Most EU member states backed plans to impose taxes on electric vehicle (EV) imports from China, according to the BBC.
Over the next five years, up to 45 per cent charges will be imposed on EVs made in China. The aim is to protect the European car industry. However, critics are concerned that the move could lead to higher EV prices for customers.
The decision, which splits EU member states such as France and Germany, risks provoking a trade war between Brussels and Beijing. China is counting on high-tech products to help revive its economy, with the EU being the largest overseas market for the country’s EV industry.
Chinese car brands including BYD started entering international markets, prompting concerns from the EU that its own companies would not be able to compete with lower prices. Brussels imposed import duties of different levels on a range of Chinese manufacturers over the summer, but a vote on Friday was to decide whether they would be imposed over the next five years.
The European Commission imposed individual tariffs on China’s three main EV brands – SAIC, BYD and Geely. However, Germany, whose car industry heavily relies on exports to China, opposed them. Some EU members also abstained from voting.
The tariff proposal could only be blocked if a qualified majority of 15 members voted against it. The European Commission, which conducted the vote, stated that the EU and China would “work hard to explore an alternative solution” to import taxes to address the so-called “injurious subsidisation” of Chinese EVs.
