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China auto body says EU draft on tariffs for Chinese EVs brings 'enormous risks'

Published 08/20/2024, 10:55 PM
Updated 08/20/2024, 11:35 PM
© Reuters. FILE PHOTO: Electric vehicle (EV) models are displayed at the booths of Denza, a joint venture between Mercedes-Benz Group AG and BYD Auto, and Chinese EV maker Voyah, at a shopping mall in Beijing, China November 3, 2023. REUTERS/Tingshu Wang/File Photo

HONG KONG (Reuters) -The China Association of Automobile Manufacturers (CAAM) said it firmly opposes a revised draft from the European Union on punitive tariffs for Chinese made electric vehicles, Chinese state broadcaster CCTV reported on Wednesday.

The decision on the tariffs brings "enormous risks and uncertainty" for China's operations and investment in the EU, the association said, according to the CCTV report.

The European Commission published on Tuesday the draft findings of its high-profile investigation into alleged subsidies for imports of Chinese-made electric vehicles, which included some revisions to proposed punitive tariffs.

The Commission, which sets EU trade policy, said it still believed Chinese EV production has benefited from extensive subsidies and proposed duties of up to 36.3% on auto companies. In July it set a maximum initial planned duty of 37.6%.

© Reuters. FILE PHOTO: Electric vehicle (EV) models are displayed at the booths of Denza, a joint venture between Mercedes-Benz Group AG and BYD Auto, and Chinese EV maker Voyah, at a shopping mall in Beijing, China November 3, 2023. REUTERS/Tingshu Wang/File Photo

The high tariffs have "damaged the confidence of Chinese enterprises operating in and investing in Europe," CAAM told CCTV.

It will have a "serious adverse impact on driving the development of the EU automotive industry, increasing local employment opportunities in the EU and achieving green and sustainable development," CAAM said.

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