The rapid growth in market share has sparked fears that Chinese cars will eventually threaten the EU's ability to produce its own green technology. Unusually, the commission acted on its own, without a complaint from the European auto industry.
Europe's EV tariffs are a setback for Chinese producers already effectively shut out of a massive potential market in the US. The standoff raises the risk of an escalating tit-for-tat confrontation in a relationship valued at €739 billion ($799 billion) in bilateral merchandise trade in 2023.
The move by Chinese authorities to suspend some investment in Europe would suggest the government is seeking leverage in talks with the EU over an alternative to tariffs, keen to avoid a sharp fall in EV exports to the key market.
It's not that clear what impact the new tariffs will have on prices for European consumers, since Chinese automakers can make cars so cheaply that they could absorb the costs in the form of lower profits rather than raising prices.
Trade frictions between the EU and China escalate as Beijing files a WTO lawsuit over the tariffs imposed on its electric cars.
Imposing steeper import tariffs would be a huge blow to China's EV carmakers and make it virtually impossible for the East Asian nation to sell its affordable EVs at low prices in foreign markets.
Disclaimer: This report is based on online sources and does not represent Infoturbo's view or position.
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