European Commission announced plans to implement a provisional anti-subsidy tax on electric vehicles imported from China, set to take effect on July 4th. This decision has drawn sharp criticism from Geely Holding, one of China’s leading automakers, which expressed its deep disappointment in a strongly-worded statement released today.
Geely minced no words in its response, stating that the European Commission’s decision to levy tariffs on Chinese electric vehicles is fundamentally misguided. The company emphasized that these tariffs will not only harm Europe’s own interests but also impede the vital economic and trade relations between China and the EU.
“Geely has heavily invested in Europe over the past two decades, boosting the entire supply chain’s innovation and creating thousands of jobs,” the statement read, underscoring the company’s substantial contributions to the European automotive landscape.
At the heart of Geely’s argument lies a steadfast commitment to free trade, fair competition, and compliance with global laws and regulations – principles that the company believes are being undermined by the European Commission’s decision. “We advocate for fair competition and compliance with global laws and regulations, while delivering top-quality products and services to customers worldwide,” the statement asserted.
In a passionate appeal, Geely urged the European Commission to reconsider its decision and instead collaborate on solutions that promote fair competition and a positive development environment. The company made it clear that it will not take this decision lying down, vowing to closely monitor the situation, engage with relevant stakeholders, and take necessary actions to protect its legal rights and the interests of its global customers.
The European Commission’s announcement on June 12th outlined the provisional anti-subsidy tax rates to be applied to Chinese battery electric vehicles (BEVs), citing preliminary findings that these vehicles benefit from unfair subsidies, potentially threatening economic harm to EU BEV manufacturers. The proposed tariff rates range from 17.4% for BYD to a staggering 38.1% for non-cooperating electric vehicle manufacturers, in addition to the existing 10% general import tax on all BEVs.
Geely’s concerns are echoed by other industry heavyweights, with BMW Group Chairman Oliver Zipse joining the chorus of criticism. “The decision to impose additional import tariffs is misguided. The European Commission is harming European companies and interests,” Zipse stated, warning of the potential escalation of protectionist measures and the resulting isolation rather than cooperation.
As the debate rages on, it’s clear that the European Commission’s decision has ignited a firestorm of controversy, with Geely leading the charge against what it perceives as a threat to fair competition and open trade. The coming weeks and months will undoubtedly see intense negotiations and lobbying efforts as stakeholders on both sides of the divide seek to sway the outcome.
In the midst of this turmoil, one thing remains certain: the global electric vehicle market is rapidly evolving, and the decisions made today will have far-reaching consequences for the future of this crucial industry. Whether the European Commission stands firm on its stance or heeds the calls for reconsideration, the reverberations of this move will be felt far beyond the borders of the European Union.