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

The China Association of Automobile Manufacturers (CAAM) has firmly voiced its opposition to the revised draft proposal from the European Union regarding punitive tariffs for Chinese-made electric vehicles, as reported by the Chinese state broadcaster CCTV on Wednesday.

According to the CCTV report, the association stated that the decision on these tariffs poses "enormous risks and uncertainty" for China's operations and investments within the European Union.

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

The Commission, which is responsible for setting the EU's trade policy, still believes that Chinese EV production has benefited from extensive subsidies. As a result, it has proposed duties of up to 36.3 per centon auto companies, which is a slight decrease from the maximum initial planned duty of 37.6 per centset in July.

CAAM has told CCTV that these high tariffs have "damaged the confidence of Chinese enterprises operating in and investing in Europe." The association further stated that this 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."

Overall, the China Association of Automobile Manufacturers has expressed its strong opposition to the European Union's revised draft proposal on punitive tariffs for Chinese-made electric vehicles, citing concerns over the risks, uncertainty, and potential negative impacts on China's operations and investments in the EU, as well as the development of the European automotive industry and its green initiatives.