Trade tensions are rising between Beijing and Brussels. The EU project against Chinese electric cars (cf.EU/China anti-subsidy rights: Beijing responds to Brussels attack) is confirmed. On 4 July, the Official Journal of the European Union published the Official Journal of the European Union.Implementing Regulation (EU) 2024/1866imposing a countervailing dutyprovisionalon imports of new Chinese battery electric vehicles into the Community. These provisional duties therefore apply from 5 July 2024 for a maximum of four months, until November 2024. It is within this period that, by vote of the Member States, the application of definitive duties must be decided for a period of five years. Provisional duties were slightly reduced from the original draft. The Chinese public manufacturer SAIC will have to pay an individual fee of 37.6% (up from 38.1% initially), Geely by 19.9% (up from 20%) and BYD keeps the rate of 17.4%. Other cooperating manufacturers in the EU investigation will be subject to the weighted average duty of 20.8 % (instead of 21 %) and non-cooperating producers to the residual duty of 37.6 % (instead of 38.1 %).
Feeling threatened, the second world economy decided to counter-attack. The Chinese Ministry of Commerce announced yesterday that it was launching a survey on EU practices in trade and investment barriers for Chinese companies. Beijing has a six-month time limit, with the possibility of adding another three months, to conduct the investigations and take possible reprisals.
At the same time, Chinese carmakers have decided to open factories outside China to get closer to European consumers. Like BYD, which has already planned to launch a production site in Hungary and is seeking to establish itself in a second European country. Making and selling on European soil could help avoid customs duties and surcharges. At the beginning of the week, the manufacturer also signed an agreement with Turkey to open a plant with a production capacity of 150,000 vehicles per year by the end of 2026. Due to the existing Customs Union between Turkey and the EU, vehicles manufactured in Turkey and exported to European countries could also escape duties and taxes. It remains to be seen whether Brussels will close its eyes or decide to put in place a complementary measure to keep its competitor at a distance.
To read more
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Fusce tortor lake, ornare dictum odio no, mollis tincidunt mi. Vivamus feugiat turpis ac consequattrices. Nam nec leo in nisi posuere vehicula. None porta tempus feugiat. Praesent shovel, urna sed placerat sodales, ex tellus ultricies velit, vitae auctor augue diam at quam. Praesent ornare arcu and sem curriculum molestie. Morbi congue arcu velit, a laoreet torture ultricies id. Duis vulputate lacinia magna, eget elementum mi pulvinar eget. Sed consectetur malesuada ultricies. In eget purus nect velit sodales ullamcorper eget in ligula. Mauris ulcers posuere lobortis. Nulla nisi purus, beaconra no is ac, faucibus lacinia torturer. Integer nunc duei, vehicula finishedbus had, euismod and orci. No mollis vestibulum luctus.
Interdum and malesuada fames ac ante ipsum primis in faucibus. Sed a ligula sagittis, eleifend metus ac, sagittis purus. Vivamus ut blandit dolor, id aliquam mi. Sed tempor tempus ornare. Sed nec risus a metus eleifend sagittis. Aenean had torture lectus. Aliquam varius iaculis curriculum. Aliquam stubborn gravida augue and elementum. Aliquam trestique interdum pretium. Nunc ut selerisk massa, sed venenatis diam. No vehicula luctus odio. Integer ac turpis massa.