Three Chinese electric car manufacturers, BYD, SAIC and Geely, have failed to provide enough information in an investigation by European Union (EU) authorities, and face fines and the EU could impose higher import tariffs. The media writes about it Politico, who has seen the letters sent to all these manufacturers. As you know, the European Commission already launched an investigation last year about the Chinese government’s subsidies to its car manufacturers, which provide them with unfair competitive advantages against European and North American companies.
It says the automakers have not provided enough information about subsidies, supply chains and the overall operating model, so the European Commission will continue to base its actions “on the facts available”. As written Politicoin practice this usually means one thing – Europe has a free hand to impose higher import tariffs and take other actions deemed necessary.
European Union Trade Commissioner Valdis Dombrovskis said that the investigation is nearing the end and it should be completed before the summer break. Chinese President Xi Jinping is visiting Europe right now and European Commission President Ursula von der Leyen has said that Europe will protect its market from the influx of Chinese subsidized goods.
Of course, as always in such cases, there is also speculation about the possible outcome and the fines or, as in this case, the tariffs applied. Market analysts from “Rhodium Group” indicate that Chinese automakers would be able to make a profit even if import tariffs reached 15-30%. Tariffs would have to be as high as 50% to deliver a serious blow. It is predicted that a decision in this case could be made by the beginning of July.
Tags: Chinese electric car manufacturers cooperate European institutions risk higher import tariffs
