European Union countries have voted to impose duties on imports of electric vehicles from China amid ongoing trade disputes. The decision comes as talks between Brussels and Beijing continue in an effort to resolve the issues before the end-of-October deadline.
Electric vehicles have become a focal point in the broader trade dispute, with concerns raised about the impact of Chinese government subsidies on European markets. The European Commission has welcomed the majority approval from member countries to impose duties, despite opposition from Germany and Hungary.
The duties are set to take effect on October 31 unless a resolution is reached with China. The European Commission has outlined that any proposed solution must comply with World Trade Organization rules, address the issue of subsidization by China, and be enforceable.
China has expressed opposition to the duties, labeling them as unfair and protectionist. However, negotiations between the EU and Chinese officials are set to continue, with technical teams scheduled to reconvene on October 7.
If implemented, the duties would range from 17% to 35.3% on various Chinese electric vehicle manufacturers, including BYD, Geely, and SAIC. The move has faced resistance from Germany, home to major automakers, and concerns have been raised about the potential for a trade conflict.
The rapid growth of Chinese-built electric cars in the EU market has raised alarms about the impact on local industry and jobs. Chinese companies are accused of benefiting from subsidies that have allowed them to undercut European prices and gain significant market share.
The EU aims to protect its green technology sector and safeguard jobs in the auto industry, which employs millions of workers directly and indirectly. The ongoing negotiations between the EU and China will be crucial in determining the future of electric vehicle trade relations between the two economic powers.
