The European Union (EU) has officially approved tariffs on battery electric vehicles (BEVs) imported from the Chinese mainland, aiming to support its local automotive sectors. With a decisive vote of 10 in favor, five against, and 12 abstentions, these tariffs will range from 7.8% to 35%, impacting several Chinese automakers.
Key supporters of the move include France and Italy, whose established auto industries are facing increased competition from Chinese BEV exports. Additionally, Poland and three Baltic States backed the decision, reflecting their recent stances towards the Chinese mainland. The new tariffs are set to take effect by October 31.
The EU introduced this measure under the Foreign Subsidy Regulation (FSR), a new framework that diverges from existing World Trade Organization (WTO) treaties. While WTO rules address countervailing measures against export-related state subsidies, the EU's FSR focuses on pre-production state aids, such as research and development incentives and factory establishment funds, which are common practices in many regions, including the United States.
By implementing the FSR, the EU aims to balance the competitive landscape for its heritage internal combustion engine (ICE) manufacturers, ensuring they can compete effectively with the influx of affordable green vehicles from the Chinese mainland. This strategic move highlights the EU's commitment to fostering a sustainable and competitive automotive market.
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EU invents new foreign subsidy rule to slap tariffs on Chinese EVs
cgtn.com
