France, Greece, Italy and Poland back EU proposal for anti-dumping duty on Chinese EVs

Chinese electric vehicles are facing tariff action from the European Union, with member countries, including France, Greece, Italy and Poland favouring anti-dumping duties of up to 45 per cent on imports of these vehicles into the EU.

The European Commission, the EU’s top decision making body, which carried out an investigation into China’s subsidised export of electric vehicles, has proposed up to 45 per cent import duty on these imports. The 27 member states are expected to vote on the proposal on Friday.

China, which is facing retaliatory trade measures from its major trading partner, the United States, has been banking on the European market for safeguarding its exports.

Data available with the EC show that registration of China-built EVs in the EU increased from 3.5 per cent of the EU total in 2020 to 27.2 per cent in the second quarter of 2024, while the penetration of Chinese brands increased from from 1.9 per cent to 14.1 per cent during the period.

China also has a spare production capacity of 3 million EVs per year, which is twice the size of the EU market, the Commission pointed out.

A vote on Friday in favour of tariffs of up to 45 per cent on imports of EVs made in China, risks potential retaliation from Beijing.

The Commission can impose the tariffs for the next five years unless 15 of the 27 member countries representing 65 per cent of the EU's population votes against the plan.

France, Greece, Italy and Poland together account for 39 per cent of the EU population.

Germany, a key member of the EU and a major car producer, however, has not made its stance clear.