EU increases tariffs on imported Chinese electric cars

(Patria) - The European Union yesterday initiated an increase in tariffs on Chinese electric vehicles, escalating a trade dispute over Beijing's export subsidies, which Brussels fears are harming domestic car manufacturers, reports VOA.

The European Commission, the EU's executive arm, announced it would impose provisional tariffs that would lead to Chinese car manufacturers facing additional duties of up to 38%, up from the current 10%.

The Commission stated it had approached Chinese authorities to discuss the findings of its subsidy investigation and to "explore possible ways to resolve the issue".

Electric cars are the latest flashpoint in a wider trade dispute over what Brussels says is China's unfair state support for green technology exports, which also includes solar panels, batteries, and wind turbines.

Imports of Chinese-made electric vehicles into the European Union have surged in recent years. This includes vehicles from Western brands that have car factories in China, including Tesla and BMW.

But EU officials complain that Chinese manufacturers, such as BYD and SAIC, are increasing their market share and undercutting European car brands thanks to Beijing's massive subsidies.

The Commission said an investigation it launched last year into Chinese electric vehicle subsidies found that China's battery electric vehicle value chain "benefits from undue subsidisation, causing a threat of economic injury to EU battery electric vehicle producers".

Chinese Foreign Ministry spokesperson Lin Jian, speaking at a daily briefing, called the EU's investigation typical protectionism and said Beijing would take all necessary measures to protect its legitimate rights and interests.