The car concern BMW called a "fatal signal" for the European car industry, the EU has approved tariffs on imports of Chinese electric cars and called for a negotiated solution to the conflict.
„Today's vote is a fatal signal for the European car industry,” said BMW CEO Oliver Zips. “What is needed now is a quick contractual solution between the European Commission (EC) and China to prevent a trade conflict that would otherwise only lead to losers,”, he stressed. The fact that Germany voted against the tariffs is “an important signal and increases the chances of a negotiated solution”.
Car manufacturer Mercedes-Benz also warned of the negative consequences of the EU vote. “We are convinced that import tariffs reduce the competitiveness of the industry in the long term,”, a company spokesman said. Free trade and fair competition enable prosperity, growth and innovation. The introduction of import duties by the EC, BMW believes, is a mistake that could have far-reaching negative consequences. The company is calling for an agreed solution with China.
This, as BMW notes, is in the interests of both parties. “We are convinced that such a solution can exist”, summed up BMW and added that it will take time.
On October 4, EU countries supported the European Commission's decision to introduce import duties on Chinese electric vehicles. At the same time, according to Agence France-Presse sources, only 10 of the 27 EU countries have voted for the initiative of the European Commission, including France and Italy. Germany and four other countries opposed, fearing a full-scale trade war with Beijing, and 12 abstained. At the same time, the countries did not support the intention of the European Commission to increase tariffs to 45% of the price of Chinese cars, but fixed the ceiling of possible tariffs at 35%. This is 10 percentage points more than the current temporary duties.
The European Commission introduced temporary tariffs against Chinese electric vehicles on July 4, which were extended in August. Their actual amount for different Chinese companies varies from 17% to 36.3%. Only for the products of the American company Tesla, produced in China, the European Commission has exceptionally reduced the tariffs to 9%. China immediately took this decision as an act of protectionism.