Chinese manufacturers propose 25% duty on European cars with internal combustion engines

Against the backdrop of escalating trade tensions between China and the European Union, Chinese electric vehicle manufacturers have proposed a 25% duty on large European vehicles with internal combustion engines. This proposal is a direct response to the recent decision by the EU to impose tariffs of up to 38.1% on Chinese-made electric vehicles if the Chinese government does not stop actions that the EU deems anti-competitive.

The Chinese proposal was discussed at a closed meeting in Beijing between the Chinese Ministry of Commerce and representatives of major European and Chinese automakers. The duty is specifically aimed at European vehicles with engines larger than 2.5 liters. Imports to China in this segment last year amounted to approximately 250,000 units.

The EU's decision to increase tariffs on Chinese electric vehicles came after an investigation showed that some of these vehicles received unfair subsidies. It is expected that the main burden of these duties will fall on the state-owned automaker SAIC Motor, known for brands such as MG. Ironically, in May MG was the best-selling Chinese electric vehicle brand in Germany.

In response to these tariffs, SAIC Motor's Global Design Director Shao Qingfen created new MG logos that include the 38.1% duty figures. He also released a line of products with this design, including bicycles, caps, socks, coffee mugs, t-shirts, and more. This caused a stir among Chinese consumers.

The Chinese government has accused the EU of using the investigation as a pretext to gain access to the commercial secrets of Chinese electric vehicle manufacturers. While the EU claims that tariffs are necessary to ensure fair competition, the Chinese government asserts that they are protectionist and will harm the global automotive industry. In response to Europe's actions, China is now proposing to impose duties on large European vehicles.

Source: arenaev