EU governments face crucial vote on Chinese EV tariffs: Report

European Union members face a crucial vote on Friday, 4 October, 2024, on whether to go ahead with levying tariffs of up to 45% on EVs that come from China, Reuters reported. 

The EU had put forth final duties for the next five years, to counter what it deems as unfair Chinese subsidies, the newswire noted. 

As per the EU rules, the Commission can levy tariffs for the coming five years, unless a majority of the 15 EU countries that represent 65% of the EU's population, votes against it, the newswire noted. 

Reuters noted on Wednesday that Poland, Italy and France would vote for the tariffs, effectively avoiding a block against tariffs. 

In the absence of a qualified majority either way, the EU executive can adopt the tariffs. However, it could also submit an amended proposal if it wanted to secure greater backing.

If there is no qualified majority either way, the EU executive can adopt tariffs, the newswire noted. It could also give an amended proposal for increased backing, the newswire noted. 

Germany will vote against introduction of tariffs, sources in the know told Reuters. German carmakers have opposed the tariffs, given that China comprises a third of their sales, the newswire noted. 

The economy minister in Spain, one that backed tariffs earlier, noted in a letter to the EU Commission Vice President Valdis Dombrovskis that EU should 'keep negotiations open' rather than resorting to tariffs, and do a deal not only on prices but also relocation of battery production to the bloc. Reuters has seen this letter. 

A clutch of EU members are apprehensive about Beijing's response. In what has touted as a retaliatory move, Beijing this year launched probes into imports of EU dairy, pork products and brandy, the newswire noted. 

However, the EU's stance towards Beijing has hardened in the past five years, now viewing China as a potential partner in some issues, but also as a competitor and a systemic rival.

The newswire further noted that EU's stance towards Beijing has become tougher in the recent five years, where it views China as a viable partner for certain issues, but a rival in others.