European Commission increases tariffs by up to 38.1% on Chinese EV companies

Hong Kong Watch welcomes the European Commission increasing tariffs by up to 38.1% on Chinese electric vehicles (EVs) imported to the EU from July, as a result of the Commission’s anti-subsidy probe on cheap Chinese EVs launched in October 2023.

Less than one month after the US quadrupled import duties on Chinese EVs to 100%, the EU has announced it will place additional tariffs of 17.4% on BYD, 20% on Geely, and 38.1% on SAIC, on top of the current 10% tariff for each company. This is due to “excessive Chinese subsidies” that are making it increasingly difficult for European automakers to compete with lower-cost EVs from China. 

European Commissioner for Trade Valdis Dombrovskis said, “The subsidy investigation on EVs is a facts and evidence based investigation... When our partners breach the rules, we will assert our rights.” Mr Dombrovskis also reiterated that these tariffs are provisional after the first 9 months of the anti-subsidy probe and that the “definitive, countervailing tariffs” will be released after a total of 13 months of the probe.

In January 2024, Hong Kong Watch published a briefing titled, Huawei and BYD Meet Hong Kong: Economic, Ethical, and Security Risks to the EU. The briefing exposed the risks of BYD establishing a factory in Hungary, including BYD’s alleged “intellectual property infringement, data security, and economic espionage” and confirmed ties to the Hong Kong Special Administrative Region (HKSAR) and the Xinjiang Uyghur Autonomous Region (XUAR), where the Beijing and Hong Kong authorities continue to dismantle the rule of law and engage in forced labour respectively. 

The briefing recommended that the European Commission penalise BYD as part of its EV probe by increasing the import tariff on all Chinese EVs from 10% to 20% or more to offset the fact that Chinese EVs are entering the EU market at a 20% lower price than similar EU products. 

Therefore, while we welcome the European Commission setting additional tariffs on Chinese EV companies including BYD to 20% or more, we urge them to further increase tariffs on Chinese EV companies at the conclusion of the anti-subsidy probe following a recent report by Rhodium Group which found that “Duties in the 40-50% range – arguably even higher for vertically integrated manufacturers like BYD – would probably be necessary to make the European market unattractive for Chinese EV exporters.”

Megan Khoo, Research and Policy Advisor of Hong Kong Watch, said:

“We thank the European Commission for this first step but urge them to further increase import tariffs on Chinese EV companies at the conclusion of the anti-subsidy probe to protect the EU’s domestic auto industry and human rights around the world.

The UK should swiftly follow suit as Chinese EVs continue to flood Britain, posing a threat to the UK’s economy and democracy. The Conservatives noted the threat of Chinese EVs in their manifesto, and Labour and Reform UK should do the same to address this pressing issue.”

歐盟將向中國電動車加徵最高達38.1%關稅 香港監察促再提高關稅以保障人權

因應2023年10月對中國廉價電動汽車開展的反補貼調查，歐盟委員會宣布，7月起向進口歐盟的中國電動汽車加徵最高達38.1%臨時關稅。香港監察歡迎決定。

美國政府對中國進口電動車的關稅提高四倍至100%後不到一個月，歐盟宣布，會在目前各車企10%關稅的基礎上，向比亞迪、吉利和上汽集團分別加徵17.4%、20%和38.1%關稅。這是由於中國製電動車獲得過度補貼，使歐洲汽車製造商愈來愈難以與低成本中國製電動車競爭。

2024年1月，香港監察發表題為《Huawei and BYD Meet Hong Kong: Economic, Ethical, and Security Risks to the EU》的簡報。簡報揭露了比亞迪在匈牙利設廠的風險，包括比亞迪涉嫌侵犯知識產權、資訊安全成疑及從事經濟間諜活動，並證實與香港特別行政區和新疆維吾爾自治區有關連，北京和香港當局持續破壞香港法治，並在新疆從事強迫勞動。

簡報建議，作為反補貼調查的一環，歐盟委員會應處罰比亞迪，把所有中國進口電動車的關稅由10%提高至20%或更高水平，藉以抵銷中國電動車以比歐盟同類產品低20%價格進入歐盟市場的現象。

因此，雖然我們歡迎歐盟委員會向比亞迪等中國電動車企業加徵20%或以上關稅，但仍促請歐盟在反補貼調查結束後，進一步提高向中國電動車企業徵收的關稅。研究公司榮鼎集團（Rhodium Group）最近發表報告，發現要令歐洲市場對中國電動車出口商失去吸引力，就有必要徵收40-50%範圍內的關稅。

香港監察研究及政策顧問Megan Khoo表示：

「我們感謝歐盟委員會踏出第一步，但仍促請歐盟在反補貼調查結束後，進一步提高向中國電動車企業徵收的進口關稅，從而保障歐盟本地汽車產業以至世界各地的人權。

中國電動車持續湧入英國，對英國經濟和民主構成威脅，因此英國政府應迅速效法。保守黨在競選宣言中提到中國電動車的威脅，工黨和英國改革黨也應這樣做，應對這個迫切議題。」