EU Votes in Favor of Extended PRC Electric Vehicle Tariffs

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Facts

  • The European Union (EU) has voted in favor of extending tariffs against Chinese-made electric vehicles (EVs) first enforced this summer for a period of five years.[1]
  • Tariffs will continue to reach up to 36% in addition to the bloc's 10% car import duty and following a European Commission investigation beginning last year alleging Chinese-state subsidies create an unfair advantage in the EV market.[2]
  • While the European bloc has not made the outcome of the vote public, it has been reported that the measure passed with 10 countries in favor, five against, and 12 abstaining.[3]
  • Countries in favor reportedly included France, Italy, Poland, and the Netherlands; countries abstaining included Belgium, Sweden, and Greece; and both Germany and Hungary voted against the policy.[4]
  • In order to reject the tariffs proposed by the European Commission (EC), a 'qualified' majority of 15 states totaling at least 65% of the EU population is necessary.[5]
  • Over 438K battery-electric cars worth $10.6B were imported into the EU from China in 2023. In the same year, 21.7% of EU battery-electric var sales were PRC-made, up from 2.9% in 2020.[6]

Sources: [1]BBC News, [2]Dw.Com, [3]Euronews, [4]Reuters, [5]Euractiv and [6]Acea.

Narratives

  • Pro-China narrative, as provided by Chinadaily and People's Daily. There's no need to be afraid of Beijing or its EV technology. Yet, as China opens up its manufacturing sector to foreign investment and seeks partnership with Europe, the West continues to spread fear and anxiety over the PRC's increasingly important place in the world. Today's decision by the EU is a step backward for international collaboration and the fight against climate change, with political agendas placed above world-leading innovation.
  • Anti-China narrative, as provided by Euractiv. Europe cannot run the risk of becoming overly dependent on China's industrial sector. Tariffs don't need to be a permanent solution, but for now, it's important for the EU to act from a position of strength. A message must be sent that while China doesn't need to be viewed as an adversary, the integrity and unity of bloc members will not be influenced by underpriced imported goods.

Predictions