The European Commission has announced the imposition of countervailing duties (CVDs) of up to 35.3% on electric vehicles (EVs) imported from the Chinese mainland. This measure comes in addition to the existing 10% tariff on imported cars, approved by EU countries in a qualified majority vote on October 4.
Industry experts argue that these duties could be a misstep, potentially harming EU citizens more than benefiting them. The increased costs on Chinese-made EVs may lead to higher prices for consumers and reduce the competitiveness of the European automotive sector.
Chinese EVs, many produced through joint ventures with EU and U.S. carmakers, have reached global quality standards while maintaining lower price points. Analysts highlight that China's dominance in EV production, accounting for 60% of the global market, is driven by vast economies of scale, low labor costs, advancements in battery technology, and intense competition among over 100 local manufacturers.
Furthermore, the perceived price advantage of Chinese EVs is attributed more to these structural factors rather than significant subsidies, which now play a minor role in market outcomes. The European automotive industry faces the challenge of balancing protectionist measures with the need to stay competitive in a rapidly evolving market.
Reference(s):
cgtn.com
