Summary
EU delays decision on countervailing duties on Chinese EVs until after European elections
Probe into subsidies in China’s electric vehicle sector ongoing
Higher import duties on Chinese EVs expected
China threatens to retaliate, including targeting EU pork exports
Germany and France attempt to defuse trade tensions with China, urge against trade wars.
Article
The European Union has decided to delay making a decision on whether to impose countervailing duties on Chinese-made electric vehicles until after the upcoming European elections. The decision was originally expected on June 5, but will now be postponed until June 10, following the announcement of the election results. This delay is reportedly to keep the politically sensitive issue out of the heated campaign trail. The investigation into Chinese subsidies in the electric vehicle sector began nine months ago, and is likely to result in higher import duties on EVs arriving from China.
Following the delay, a public announcement on provisional tariffs is expected to take place on July 4. After this, the European Commission and EU member states will have four months to decide whether to impose permanent duties on Chinese imports of electric vehicles. Beijing has threatened to retaliate for the potential duties, with state media suggesting that EU pork exports could be targeted. China is also considering investigating a subsector of combustion engine cars made in Germany and Slovakia, as well as conducting an anti-dumping investigation into European brandy as a rebuke to France’s support for the EV probe.
In response to the tensions with China, ministers from Germany and France have attempted to defuse the situation. German Transport Minister Volker Wissing criticized the commission’s probe, comparing it to Communist East Germany and questioning the fairness of the competition allegations. French Finance Minister Bruno Le Maire emphasized the importance of avoiding a trade war, stating that the G7 must present a united front to protect its industrial interests. He highlighted that while China is an important economic partner, it also has industrial overcapacity that needs to be addressed.
Overall, the delay in the decision regarding countervailing duties on Chinese-made electric vehicles reflects the complexity of the trade relationship between the EU, China, and other global partners. The upcoming European elections have added an extra layer of political sensitivity to the issue, prompting the postponement of the announcement. As trade tensions continue to escalate, it is crucial for countries to find ways to address unfair practices while avoiding a full-blown trade war that could negatively impact economies around the world. The statements from German and French ministers highlight the importance of diplomatic solutions and collaboration among international partners to resolve trade disputes effectively.
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