The China Chamber of Commerce for Import and Export of Machinery and Electronic Products warned that if the European Union (EU) imposes anti-subsidy tariffs on Chinese electric vehicles, it could lose Chinese investment in Europe.
Chinese companies have expressed concern over reports that the EU’s identification of Chinese electric vehicles as “subsidized” could become a future excuse to investigate foreign subsidies to Chinese companies investing in Europe, the Chamber noted.
According to a review by Economía Magazine, the Chamber mentioned that various automotive companies were planning to start investing in Europe before the EU’s anti-subsidy investigation into Chinese electric vehicles began. However, after the European Union’s decision, many of those companies withdrew from their plans.
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The Chamber emphasized that Chinese electric vehicle companies are closely monitoring the progress of the EU’s anti-subsidy investigations and will assess the risks of investing in Europe, making investment decisions accordingly.
Origin of the Conflict
The controversial relationship between the Asians and the 27-member bloc began when the European Commission (EC) imposed provisional tariffs of up to 37.6% on imports of electric vehicles from China to offset the damage to EU producers caused by unfair subsidies to that Chinese sector.
According to a report by EFE Agency, the Commission reached this conclusion nine months after it had launched an anti-subsidy investigation into these imports.
The individual duties applicable to the three Chinese producers included in the sample amount to 17.4% for BYD, 19.9% for Geely, and 37.6% for SAIC.
