The Chinese car giants suck the EU for duties

The Chinese car giants suck the EU for duties

The three of the major Chinese electric car manufacturers have started a cause against the European Commission for the import duties of Made in China vehicles. This is what the Hong Kong newspaper reports South China Morning Post, specifying that few details have been made public. But who are these Chinese companies that sue the European executive? Let’s see it in detail.

The reasons for the cause of Chinese companies against the Commission

Byd, Geely and Saic, three of the major Chinese car manufacturers, together with an important trade association, have filed a cause against the European Commission. The documents filed at the Luxembourg Court, the second highest court of the European Union, show that the three Chinese giants have launched legal actions against European anti-sioves imposed on Chinese manufacturing electric vehicles last year.

Chinese companies contest the Commission the statement that some funds are subsidies, the way in which the subsidies have been calculated and the hypothesis that caused damage to the single EU market. The story was born from an investigation launched in October 2023, which concluded that Chinese subsidies lower the costs of electric vehicles, damaging European competitiveness. The European Commission has declared to be aware of the case and to have two months and 10 days to prepare its defense.

How much European duties on Chinese cars weigh

The dispute was started after last October Brussels imposed additional duties for five years, in addition to the basic rate of 10 percent: Saic suffered the maximum rate of 35.3 percent, while Byd and Geely are subjectively at 17 respectively percent and 18.8 percent of taxes. The companies that collaborated on the European investigation are affected by a rate of 20.7 percent, while those who did not do it are subject to a 35.3 percent duty. The only company that has had a reduction tax is Tesla which, thanks to a separate agreement, pays a 7.8 percent rate. Chinese electrical vehicles producers also complained that Tesla, the largest electric car exporter from China to the EU, received different treatment than Chinese companies.

The decision had been under consideration for months, but on 29 October the publication on the Official Gazette of the EU arrived. This is the last formal passage required to make the decision on duties to Chinese electric cars operational, which came into force starting from 31 October. The EU is thus intends to protect the European automotive industry, which gives work to about 14 million people, but has fallen into a profound crisis, as shown by the recent decisions adopted by Volkswagen regarding the closure of three factories in Germany. The duties strategy has determined results, but only partial. According to the latest report of the China Passenger Car Association, in 2024 the exports of Chinese electric cars and hybrids increased by 24.3 percent compared to the previous year and the producers exported a total of 1.29 million vehicles of this type .

The legal dispute could increase the commercial tensions between China and the European Union. In response to the measure of the commission last October, the Popular Republic imposed rates on Brandy, dairy products and European pork. The discussion between the two parts to solve the dispute is currently in a stall phase, while Brussels and Beijing are struggling with the threats of the duties agitated by the US President Donald Trump.

Thus China responds to EU duties on electric cars