EU/China anti-subsidy rights: Beijing responds to Brussels attack
In response to the Brussels announcement on the possible application of anti-subsidy duties on Chinese electric vehicles, Beijing threatened to open an anti-dumping investigation into certain European products imported into China. Are we engaged in a trade war?
On Wednesday 12 June, the European Commission announced that it was planning to set up aanti-subsidy rightsProvisionalIn addition, from 17.4% to 38.1% on Chinese electric cars, starting on 4 July. These rights would therefore beadd to the 10% already applied customs dutieson new Chinese vehicles imported into Community territory. This decision derives from the preliminary conclusions of the anti-subsidy investigation opened by Brussels in October 2023 (cf.EU opens anti-subsidy procedure against Chinese electric vehicles) which have just been published and show that the value chain of electric battery-powered vehicles in China benefits from state subsidies deemed unfair, thereby causing substantial economic harm to European producers.
These new anti-subsidy duties are expected to vary according to car manufacturers, proportional to the level of public subsidies received. China's public manufacturer SAIC will have to pay the highest fees of 38.1%, Geely 20% and BYD 17.4%. Other cooperating manufacturers will be subject to the weighted average duty of 21 % and non-cooperating producers to the residual duty of 38,1 %.
If this EU measure is not yet definitive and is intended to open the negotiations, it will not have taken Beijing long to react by announcing the initiation of an anti-dumping investigation into imports of pig and pig products from the European Union. The measure is of particular concern to Spain, the largest European importer of pig products in China (560,000 tonnes sold last year worth €1.2 billion), ahead of Denmark, the Netherlands and France. It remains to be seen whether other products could be targeted by Beijing. While Xi Jinping was reassuring during his visit to France in early May about China's survey of European brandies, mainly targeting Armagnac and French cognac (cf.China-France: Chinese President visits Paris), any volte-face is still possible as the conclusions have not yet been reached. Other agricultural products, like the aviation sector, could also suffer the lightnings of Beijing.
Source(s): European Commission | The Tribune | The Echoes
Editor(s): C. Bedouin