British media: EU investigates Chinese electric vehicles to protect auto industry, Tesla may suffer

On September 14, Beijing time, the European Union announced on Wednesday it would launch a countervailing investigation into Chinese electric vehicles. In this regard, British media pointed out that the EU's intention to do this is to protect European automakers and prevent them from being squeezed out of the market by Chinese rivals due to price disadvantages.

British media said that although electric vehicles imported from China currently only account for a small share of the EU market, Chinese car companies are growing rapidly and the market share may reach 15% within two years, repeating the EU's solar panel failure more than 10 years ago. experience. Most of the solar panels used in the EU are now produced in China.

"We cannot afford to lose the car industry," said a senior EU diplomat. The European Union will ban the sale of new internal combustion engine cars from 2035 to reduce carbon emissions, but there are concerns their electric car replacements will be made in China rather than Europe.

British media said that if the European Commission finds that local manufacturers have been harmed, they may impose tariffs on Chinese electric vehicles, with the tax rate likely to be between 10% and 15%. The countervailing investigation is expected to last nine months.

But any EU measures would also hit foreign investors who benefit from overseas subsidies, which could include companies such as Tesla in the United States and Polestar in Sweden. Europe will target battery-powered cars, but not hybrids.

"EU manufacturers producing in China will also be considered Chinese exporters...so European manufacturers will also face tax rate issues." Arnoud Willems, a trade lawyer at Baker McKenzie )express.

In addition to competing with Chinese electric vehicles, European carmakers rely on batteries produced by Chinese companies in Europe or China. The problem is harder to solve with tariffs, partly because work by Chinese companies has begun to build battery factories across Europe and because Western carmakers have integrated cells from the likes of BYD, CATL or Envision Power into their own models.