The European Union looks set to relax tariffs on Chinese electric vehicles being imported as drivers opt for affordable EVs and manufacturers from the Far East accelerate the global rollout of the vehicles.
In a new announcement, the European Commission and the Chinese government have moved closer to a resolution amid a long-standing dispute over the sale of Chinese-made electric vehicles across the continent.
Politicians argued that China was taking advantage of unfair market conditions to sell electric vehicles at a far lower rate than traditional manufacturers in Europe.
As part of a new solution to the issue, the European Commission has suggested that Chinese brands can replace EU tariffs with pledges to sell at minimum prices.
At present, a number of brands are subject to high tariffs following an investigation by the European Commission. These include:
Tesla (Shanghai) Co. Ltd – 7.8 per cent (upon application for individual examination)BYD Group – 17.0 per centGeely Group – 18.8 per centAll other cooperating companies – 20.7 per centSAIC Group – 35.3 per centAll other non-cooperating companies – 35.3 per cent
The European Union and China could soon reach an agreement to relax hefty tariffs
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It added that the bloc would take into account Chinese electric vehicle investments in the bloc.
China said it favours a minimum price commitment to ensure European manufacturers are not priced out of the market.
Chinese automakers have far greater access to cheaper raw materials and vital components than European counterparts, allowing them to significantly undercut other brands.
The European Commission stated: “Each price undertaking offer is subject to the same legal criteria and the European Commission will conduct each assessment in an objective and fair manner, following the principle of non-discrimination and in accordance with WTO rules.”
The rules could also make it more difficult for companies to sell other vehicles, including hybrids, to the EU over fears of “cross-compensation”.
The Chinese Ministry of Commerce has consistently criticised the tariffs, arguing that they were disproportionate and unfairly targeted manufacturers.
However, a spokesperson has now said: “The progress fully reflects the spirit of dialogue and the outcomes of consultations between China and the EU.
“It shows that both China and the EU have the ability and willingness to properly resolve differences through consultation.
SAIC, the owner of MG Motor, was slapped with the largest tariff, worth 35.3 per cent
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“This is conducive not only to ensuring the healthy development of China-EU economic and trade relations, but also to safeguarding the rules-based international trade order.”
One Chinese manufacturer, Nio, has already backed the new plans, saying it will continue to operate in Europe after the release of the Commission’s conditions.
It added that it was “pleased” to see healthy dialogue between China and the European Union towards consensus on the “basis of mutual respect”.
