BRUSSELS — Starting Thursday, the European Union will begin imposing tariffs on electric vehicle imports from China, following unsuccessful negotiations between European and Chinese officials aimed at resolving trade tensions, as stated by EU spokesperson Olof Gill.
The introduction of these duties highlights the escalating trade conflict, with electric vehicles emerging as a central issue. This situation has drawn attention to the significant role that Chinese government subsidies play in distorting competition within European markets. Such subsidies have enabled Chinese electric vehicles to penetrate the market and exert downward pressure on the pricing of EU manufacturers.
Data from the European Commission indicates a dramatic increase in the market share of Chinese-manufactured electric cars, which surged from just 3.9% in 2020 to 25% by September 2023. This rapid growth has raised concerns about the implications for local industries, with accusations suggesting that these foreign vehicles are entering the market at artificially low prices due to the influence of governmental support from China.
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