The European Union will impose duties on Chinese-made electric vehicles this week, after talks with Beijing failed to reach a deal that would have halted their passage.
In a final ruling published on Tuesday, the European Commission confirmed that a top rate of 35.3 per cent would be applied to EVs from the state-owned company SAIC Motor and its subsidiaries, on top of a baseline 10 per cent duty that applies to all EV imports.
The ruling is expected to be written into EU law by Wednesday, the final procedural deadline for imposing the duties. They are then expected to enter into force a day later.
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Chinese firms BYD and Geely, plus their subsidiaries, will pay lower additional duties of 17 per cent and 18.8 per cent, respectively. For Tesla, which cut a side deal with the European Commission, the rate is 7.8 per cent.
Other companies deemed to have cooperated with the EU's anti-subsidy probe will pay a rate of 20.7 per cent, while those found to have been uncooperative will pay the maximum 35.3 per cent.
The ruling follows last-minute efforts to avert the tariff plan that had played out in recent days.
China's Ministry of Commerce over the weekend said technical negotiations resumed. These aimed to negotiate a settlement whereby the tariffs would be reduced or stopped in exchange for companies agreeing to a minimum price on EV sales in the EU.
However, the talks foundered amid disagreement on how such a price-undertaking agreement would work.
Beijing wanted a blanket deal to be applied to all companies through a state-backed chamber of commerce, whereas the commission preferred to negotiate with individual companies.
Negotiations are expected to continue, even after the tariffs are in place. This would ensure that any breaches of price-undertaking agreements that are reached in the future would automatically trigger the imposition of tariffs.
This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2024 South China Morning Post Publishers Ltd. All rights reserved.
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