In the Old Continent, the crisis is leading many manufacturers to tie up with the majors of the Red Dragon Country. Nobody expected the appeal to remove duties. A real war is taking place between the Old Continent and the Asian Giant. Starting from October 30th, the collection of huge duties that have been imposed for the marketing of China electric vehicles began in Europe.
These duties start from 7.8% up to 35.3% depending on the brand. Europe has decided to impose this trade measure to avoid the exclusion of EU countries from this sector. This situation is caused by the use of a too low selling price imposed by China on these cars.
China has decided to file a lawsuit against the European Union at the World Trade Organization. The Chinese Ministry of Commerce stated in a statement that this is a protectionist practice of ‘unfair competition’ in the name of ‘fair competition’. It then highlighted its willingness to continue negotiations for the cancellation of duties.
This cancellation is particularly supported by Germany, which is also affected by this trade decision. A glimmer of hope opens up for the Asian Giant and there are rumors of the replacement of duties . With the possibility of establishing minimum prices for Chinese electric vehicles.
Mercedes supports China: No to duties!
The German giant had recently increased its economic growth in the chinese market. Investing 2 billion dollars in the Fujian plant for the production of an electric sedan. An extended wheelbase SUV and a luxury van. A few months have passed since Mercedes stated that it wanted to plan long-term investments in the Chinese market.
With the new measures, however, the German company will have to change strategy and compete on the front line against the political leaders for the abolition of Chinese duties.
The new ACEA president and CEO of Mercedes , Ola Kallenius, has called on the Brussels parliament to review the new Chinese tax, asking for its cancellation. During an interview with the Financial Times, Ola Kallenius also argued that this situation of excessive protectionism in this sector could lead to unfavorable consequences for the European automotive industry.
The manager then suggested to the European Union a deal with China aimed at opening Chinese factories in Europe.https://youtu.be/BtOFo4zr8Ts?si=VGya5YC-0wHjSQ9c