This decision is implemented with the purpose of creating an environment where the EVs and automotive industry from the EU are not put at risk. Even more so, the competition between China and the EU is seen as unfair by the EU manufacturers.
“This decision for additional import duties is the wrong way to go. The EU Commission is thus harming European companies and European interests.” And that "Protectionism risks starting a spiral: Tariffs lead to new tariffs, to isolation rather than cooperation. From the BMW Group's point of view, protectionist measures, such as the introduction of import duties, do not contribute to successfully competing in international markets. Free trade remains the BMW Group's guiding principle. Our company is committed to this.”, comments Oliver Zipse, CEO of BMW.
The European Commission justified its decision by enhancing the substantial subsidies the Chinese government offers to EV manufacturers. According to the Commission, those subsidies further allow Chinese EV manufacturers to sell and produce auto vehicles at prices that are hard to equal in the European automotive market. Those market differences have the potential to harm or endanger the automotive industry from the EU, a crucial part of its economy.
Ursula Von Der Leyen, the minister of the European Commission, stated that those measurements are necessary to protect the economy, jobs, and businesses from the European Union. She also highlighted that the EU supports fair competition and that price differences can not go unnoticed. The tariffs that will be implemented will range from 17.4% to 38.1% and will be applied to major Chinese EV manufacturers such as BYD, Geely, and SAIC (BYD: 17.4%, Geely: 20%, SAIC: 38.1%).
"The Chamber believes that if tariffs are to be levied, it should be done proportionately and in a manner that is transparent and consistent with WTO rules. It is also important to note that the EU’s EV anti-subsidies investigation is just entering its provisional stage and that definitive measures if taken, will only be confirmed at the end of the year.” says the European Union Chamber of Commerce in China, and that
"The provisional announcement of tariffs underlines the urgency of finding solutions to the very real imbalances in the commercial relationship between Europe and China, in particular, if such imbalances arise from factors not reconcilable with the principles of free and fair trade.”
The Chinese reaction to those announcements warned that their decision could backfire in the growth of the European consumers' costs and the EU Commission to eliminate their competition. Even more so, the Chinese spokesperson urged the EU to reconsider their decision as China will be taking measures toward its legitimate rights and interests.
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