https://sputnikglobe.com/20240821/china-hits-eu-with-dairy-subsidy-probe-after-blocs-cheesy-move-to-tariff-chinese-evs-1119864793.html
China Hits EU With Dairy Subsidy Probe After Bloc’s Cheesy Move to Tariff Chinese EVs
China Hits EU With Dairy Subsidy Probe After Bloc’s Cheesy Move to Tariff Chinese EVs
Sputnik International
China struck back against Brussels’ looming EV tariff hike on Wednesday, announcing an investigation into the bloc’s subsidies for dairy industry exports.
2024-08-21T18:58+0000
2024-08-21T18:58+0000
2024-08-21T18:58+0000
economy
josep borrell
europe
european union (eu)
european commission
beijing
china
ireland
geely
chamber of commerce
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Beijing struck back against Brussels’ looming EV tariff hike on Wednesday, announcing an investigation into the bloc’s subsidies for dairy industry exports.The probe covers EU fresh, curd, blue, and processed cheeses, milk and cream for the period between April 2023 and March 2024, with the exports worth some €1.7 billion (about $1.9 billion US).France, a key lobbyist for the Chinese EV tariffs, faces the greatest potential losses in the brandy and wine probes, and would be hit again if Beijing moved to slap tariffs on dairy exports, which are worth about €190 million ($212 million).But Ireland would potentially be hit hardest by any new Chinese restrictions, accounting for some €423 million ($472.3 million) of the EU dairy export total. Ireland has not been a particularly vocal or influential proponent of the Chinese EV tariff initiative, which calls for the bloc to apply additional tariffs of up to 36.3% on Chinese electric vehicles.That includes a 17% tariff on BYD vehicles, a 19.3% duty on Geely cars, and a 36.3% tariff for SAIC vehicles. Tesla Motors faces a smaller, 9% tariff on its Chinese-built vehicles, having cooperating with the EU’s investigation and been determined to receive fewer subsidies.An EU spokesperson said the bloc would follow the dairy probe “very closely” and make sure that it “fully complies with relevant WTO rules.”Awakening Dragon’s WrathChina’s Chamber of Commerce to the EU expressed its “strong dissatisfaction and firm opposition” to the EV move on Tuesday, accusing the bloc of the “unfair use of trade tools to hinder free trade,” and warning that the decision would “weaken the resilience of the European electric vehicle industry” itself and “exacerbate trade tensions.”Europe’s EV supply chains are heavily reliant on batteries made in China, and this dependence is expected to grow further over the coming three years, from about 30% now to about 50% by 2027. In addition to making Chinese-made vehicles much more expensive, the EU’s tariff move threatens to balloon the cost of EVs made in the EU in an escalating trade row.EU Foreign Policy chief Josep Borrell tried to disarm a potential trade war with Beijing Tuesday, saying that while “our political systems are different,” that “shouldn’t lead to a systemic and permanent rivalry. That’s not in our interest.”Borrell also took a surprise shot across the Atlantic over the US’s trade policies, which he blamed for the rising trade tensions with China.
https://sputnikglobe.com/20240820/trade-war-around-the-corner-eu-cuts-tariffs-on-chinese-evs-by-just-1-amid-industry-warnings-1119844526.html
https://sputnikglobe.com/20231206/eu-overpaid-185-bln-for-gas-due-to-russia-sanctions–1115419103.html
https://sputnikglobe.com/20240412/war-new-fiscal-policy-rules-and-austerity-to-turn-eu-into-us-1117880276.html
beijing
china
ireland
2024
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why is china probing european dairy products, why did eu slap heavy tariffs on chinese electric vehicles, are eu and china in a trade war, will eu and china have a trade war
why is china probing european dairy products, why did eu slap heavy tariffs on chinese electric vehicles, are eu and china in a trade war, will eu and china have a trade war
The European Commission announced plans to slap import duties as high as 36% against Chinese electric vehicles on Tuesday after an investigation alleging that Beijing heavily subsidizes the industry to benefit exports. China’s Commerce Ministry and the China Association of Automobile Manufacturers slammed the “unfair” and “protectionist” decision.
Beijing struck back against Brussels’ looming EV tariff hike on Wednesday, announcing an investigation into the bloc’s subsidies for dairy industry exports.
The EU’s EV tariff threats previously prompted the Chinese government to launch probes into exports of brandy and pork products from the bloc (worth €1.6 billion, or $1.78 billion, and €3 billion or $3.34 billion, respectively), and to threaten an investigation into wine, worth €1.2 billion ($1.33 billion). European chemical products and medical devices have also been put under the microscope for suspected illegal subsidies.
France, a key lobbyist for the Chinese EV tariffs, faces the greatest potential losses in the brandy and wine probes, and would be hit again if Beijing moved to slap tariffs on dairy exports, which are worth about €190 million ($212 million).
But Ireland would potentially be hit hardest by any new Chinese restrictions, accounting for some €423 million ($472.3 million) of the EU dairy export total. Ireland has not been a particularly vocal or influential proponent of the Chinese EV tariff initiative, which calls for the bloc to apply additional tariffs of up to 36.3% on Chinese electric vehicles.
That includes a 17% tariff on BYD vehicles, a 19.3% duty on Geely cars, and a 36.3% tariff for SAIC vehicles. Tesla Motors faces a smaller, 9% tariff on its Chinese-built vehicles, having cooperating with the EU’s investigation and been determined to receive fewer subsidies.
All 20 categories of subsidies being investigated by China’s dairy probe fall under either the EU-level Common Agricultural Policy or individual nations’ programs, from young farmers’ allowances and subsidies, loan and insurance schemes to financial assistance for storage facilities.
An EU spokesperson said the bloc would follow the dairy probe “very closely” and make sure that it “fully complies with relevant WTO rules.”
The EU’s industry and agriculture have already been hit by dramatic increases in energy prices not seen since the 1970s thanks to the bloc’s politicized decision to try to weak itself off Russian oil and gas supplies, which have made almost all industrial goods, from nitrate fertilizer and chemicals to steel made by the bloc’s massive steel plants, exorbitantly expensive to produce.
EU Foreign Policy chief Josep Borrell tried to disarm a potential trade war with Beijing Tuesday, saying that while “our political systems are different,” that “shouldn’t lead to a systemic and permanent rivalry. That’s not in our interest.”
Borrell also took a surprise shot across the Atlantic over the US’s trade policies, which he blamed for the rising trade tensions with China.
“When they take measures against China…they don’t ask us if it suits us or not. When they ban the import of Chinese cars, or place deterring tariffs, they don’t ask themselves where these Chinese cars that will not go to the US will go. Where will they go? To which other market can they go? Well of course, to the European market, and that causes a competitiveness problem for our industry,” Borrell said.
