[ramki.grandhi]

Some of the soldout news outlets might say this is against free market. But they conveniently ignore the fact that, it is very hard to compete with a product which is made by Chinese sweat shops that operate at borderline slavery!

This is actually good for EU local manufacturers and strengthen their economy and job market. Also helps the carbon foot print from manufacturing spread evenly. The similar approach pushed all non Indian brands to set up manufacturing units in India but GST, high road tax etc aren't helping much.

[SmartCat]

Originally Posted by ramki.grandhi

Some of the soldout news outlets might say this is against free market. But they conveniently ignore the fact that, it is very hard to compete with a product which is made by Chinese sweat shops that operate at borderline slavery!

Employee expenses for car companies is around 10% of revenues in US/Europe and 5% in developing countries like India/China. So low salaries will not give the Chinese a significant edge.

Agree with the "sold out news outlets" part though since they ignore the Chinese subsidies for the entire EV supply chain & other forms of govt intervention in the EV economy.

But thankfully, WTO has enough provisions to counter such moves by China.
https://en.wikipedia.org/wiki/Countervailing_duties

Countervailing duties (CVDs), also known as anti-subsidy duties, are trade import duties imposed under World Trade Organization (WTO) rules to neutralize the negative effects of subsidies. They are imposed after an investigation finds that a foreign country subsidizes its exports, injuring domestic producers in the importing country.

[vinya_jag]

EV is an altogether different industry to the traditional car industry. The one Europe is used to is the one that deals with Steel and Oil. The partnerships, trade policies that EU countries have had in the past are not going to give them an edge in the EV industry.

Whereas China has built the ecosystem to manufacture EVs ahead of any other countries. They probably manufacture the most Solar panels too, In batter tech, they probably have 70% of the share.

It is wise for European countries to embrace the shift, partner with Chinese battery manufacturers, and step into the new world of transport. Impose more and more road taxes on EVs, and enjoy the bounty.

[volkman10]

BYD outsmarts EU with $1 Billion Turkish EV factory.

The new plant will produce 150,000 vehicles per year, starting in 2026.
BYD can avoid EV tariffs in Europe by manufacturing vehicles in Turkey.
Over 1.4M vehicles were built in Turkey last year by brands like Renault, Hyundai, and Ford.

Following a recent European Commission investigation, BYD will face 27.5% tariffs on EVs it builds in China and sells in Europe. In addition, Turkey recently imposed an additional 40% tariff on all Chinese vehicles to protect its own car industry, as well as Togg, the nation’s own EV manufacturer.

Fortunately for BYD, Turkey is part of the EU’s Customs Union, meaning vehicles it builds there can be exported to Europe without additional tariffs.

Late last week, President Erdogan told Chinese leader Xi Jinping that this 40% tariff would be waived for brands that invest in Turkish production, which is exactly what BYD is now doing.

Link

[volkman10]

Big win for some Chinese built EV manufacturers.

EU cuts import tariffs on China-built Tesla, BMW and VW EVs, plus Chinese-branded models.

The European Union has reduced some of the steep tariffs on EVs imported from China that it announced in July.
Tesla’s tariff rate drops from 20.8 percent to 9 percent, and BMW’s electric Mini is now taxed at 21.3 percent instead of 37.6 percent.
VW EVs also benefit, as do electric cars made by some Chinese automakers, including SAIC and BYD.

The EU’s initial report called for a 20.8 percent tariff on imported China-built Teslas, but that rate has now been reduced to just 9 percent on appeal. The American automaker had asked for a recalculation following the publication of the July report, and after ascertaining that Tesla received less state aid than some other firms building cars in China, the EU agreed to reduce Tesla’s tariff.

But the EU didn’t remove the duty altogether because it found that Tesla does receive batteries at below market value, one of the ways Europe says some automakers receive help from the Chinese state that gives them an unfair economic advantage against car firms building cars in other parts of the world. The EU’s report listed multiple other ways in which China-based automakers can receive help, including cheap land, grants and loans at favorable rates.

And even the Chinese brands scored small – and we do mean small – wins. BYD’s tariff rate has dropped from 17.4 percent to 17 percent, Geely’s falls from 19.9 to 19.3 percent and SAIC’s rate improves from 37.6 percent to 36.6 percent.


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[shortbread]

Originally Posted by volkman10

Big win for some Chinese built EV manufacturers.

EU cuts import tariffs on China-built Tesla, BMW and VW EVs, plus Chinese-branded models.

Tesla will face more trouble in Europe from the chinese, on top of the traditional European manufacturers making a strong comeback in European EV sales. These tariffs will be of little advantage especially considering the pricing power Chinese have, supplemented by the falling yuan. Once the Chinese have their domestic European operations/plants running in full swing they'll just go from strength to strength.

[volkman10]

China to consider investigations into imported EU products by adding an anti-subsidy probe of several products imported from Eu.

China retaliated by saying that it had broadened its investigations into imported EU products by adding an anti-subsidy probe of several cheese cheese, cream goods and milk to anti-dumping checks on pork and brandy, the newswire reported.

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[volkman10]

EU to trim proposed tariffs on EVs from China.

The European Union will lower proposed final tariffs on Tesla and slightly trim rates for other electric vehicles from China after taking into account submissions by the companies.

Tesla's proposed tariff rate will drop to 7.8%, from 9%. For BYD, there was no change to its 17% tariff. For Geely, the new rate would be 18.8% from a previous 19.3%. A peak rate of 35.3% would apply to SAIC and other companies not cooperating with EU investigation.

These tariffs are on top of the EU's standard 10% import duty for cars.

The proposed final duties will be subject to a vote by the EU's 27 states. They will be implemented unless a qualified majority of 15 EU members representing 65% of the EU population vote against.

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[volkman10]

Brussels breaks impasse after EU countries fail to agree on Chinese EV tariffs.

European Union countries failed to agree on whether to slap China-made electric vehicles (EVs) with steeper tariffs during a closely watched vote that ended with too many abstentions, forcing the European Commission to break the impasse and bring its proposal to the finish line.

The outcome of Friday's vote was not publicly available, although several diplomats told Euronews how each member state positioned itself:

- 10 were in favour: France, Italy, the Netherlands, Poland, Denmark, Ireland, Bulgaria, Estonia, Lithuania and Latvia. (45.99% of the EU population)
- 12 abstained: Belgium, the Czech Republic, Greece, Spain, Croatia, Cyprus, Luxembourg, Austria, Portugal, Romania, Sweden and Finland. (31.36%)
- Five were against: Germany, Hungary, Malta, Slovenia and Slovakia. (22.65%)

It was up to the Commission, which has exclusive powers to set the bloc's commercial policy, to break the gridlock and ensure the duties go through.

The extra tariffs are designed to offset the damaging effects of the subsidies and close the price gap between Chinese and EU firms. They vary according to the brand and their level of cooperation with the Commission's investigation:

Tesla: 7.8%
BYD: 17%
Geely: 18.8%
SAIC: 35.3%
Other EV producers in China that cooperated in the investigation but have not been individually sampled: 20.7%
Other EV producers in China that did not cooperate: 35.3%

The tariffs will enter into force in November and be collected by customs officials.

They will come on top of the existing 10% rate. This means that, in practice, some Chinese carmakers will soon face tariffs of over 45% when they try to bring their goods into the single market.



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[M/T]

Update 1:

The proposed duties on EVs built in China of up to 45% would cost carmakers billions of extra dollars to bring cars into the bloc and are set to be imposed from next month for five years.

In a pivotal vote on Friday, 10 EU members backed tariffs and five voted against, with 12 abstentions, EU sources said.
It would have taken opposition from a qualified majority of 15 EU members, representing 65% of the EU population, to block the proposal.
The region's biggest economy and major car producer, Germany, voted against the proposal, sources said on Friday.

Beijing has threatened retaliation if tariffs go ahead.

Source: https://www.reuters.com/business/aut...fs-2024-10-04/


Update 2:

VW CEO says Chinese automakers should be allowed to avert tariffs by investing in EU

The CEO of German carmaker Volkswagen, said the European Union should consider adjusting planned tariffs against China-made electric vehicles to make allowances for investments made in Europe.
"Instead of punitive tariffs this should be about mutually giving credit for investments. Those who invest, create jobs and work with local companies should benefit when it comes to tariffs," VW CEO Oliver Blume told Sunday paper Bild am Sonntag an interview.

VW's Blume told Bild am Sonntag that there was a risk that retaliatory tariffs by China would hurt European carmakers.

Source: https://www.reuters.com/business/aut...eu-2024-10-05/

[volkman10]

EU, China agrees to more talks on potential alternatives to EV tariffs.

The European Union and China have agreed to hold further technical negotiations soon on possible alternatives to tariffs on China-built electric vehicles, although significant gaps remain

The EU is set to impose additional tariffs of up to 35.3% next week on electric vehicles built in China at the conclusion of its anti-subsidy investigation but has said talks can continue after then.

The two sides are looking at possible minimum price commitments from Chinese producers or investments in Europe as an alternative to tariffs.

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