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Electric vehicle taxes: Chinese SAIC demands to be heard by the European Commission

The European Union accuses Beijing of having illegally favoured its manufacturers. On Thursday, it imposed an additional customs duty of up to 38% on imports of these cars.

Chinese carmaker SAIC, a state-owned giant particularly affected by new EU surcharges on electric vehicles from China, demanded on Friday to be heard by the European Commission on this issue.

The European Union (EU) imposed on Thursday as a precautionary measure up to 38% additional customs duties on imports of these cars, before a final decision in November. It accuses Beijing of having illegally favoured its manufacturers.

Following an anti-subsidy investigation launched in October, Brussels announced the surcharges on June 12, while starting talks with Beijing to try to resolve the issue and defuse the risks of a trade war. SAIC, a large state-owned company based in Shanghai, is particularly affected because it says it has to pay customs duties of around 37.6%.

“In order to effectively protect its legitimate rights and interests as well as the interests of its overseas customers, SAIC Motor will officially request a hearing with the European Commission” on these surcharges, the manufacturer said in a statement on Friday. Press release.

A dialog window

The company accuses the European Commission of having exceeded the limits of its investigation by requesting commercially sensitive information, such as chemical formulas related to batteries. The Chinese manufacturer also accuses it of having made “calculation errors” and of having “ignored certain” information submitted by the company in its defence.

“SAIC opposes the establishment of artificial trade barriers for new energy vehicles and calls for a market order based on fair competition,” it said in its statement.

“Only through open dialogue and cooperation can China and the EU… jointly build a green and low-carbon global economy.”

The European Commission now has four months to decide on the final surcharges, which leaves a window open for dialogue. These final duties, which must be approved by the 27 Member States, would be valid for five years.

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While France and Spain actively pushed for proportionate measures, Germany, which is heavily involved with China, instead fought with Sweden and Hungary to avoid sanctions, fearing retaliation from Beijing. China has repeatedly threatened retaliatory measures.

Chinese Foreign Ministry spokesman Mao Ning reiterated Friday during a regular press briefing that Beijing will take “necessary measures” to safeguard its interests.

Author: PD with AFP
Source: BFM TV

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