China “does not recognize or accept” the conclusion of the investigation and will take “all necessary measures” to protect the legitimate rights and interests of Chinese companies, a Commerce Ministry spokesman told the Global Times after the European Commission closed the investigation on Tuesday by imposing definitive countervailing duties on imports of battery electric vehicles manufactured in China for a period of five years. The decision came into force yesterday.
“The nature of the investigation is unfair trade protectionism disguised as so-called ‘fair market competition,'” the Chinese ministry said. And the Chinese Chamber of Commerce in the EU (CCCEU) said in a statement to the Global Times that it was deeply disappointed by the European Commission’s decision on a “protectionist measure” aimed at Chinese electric vehicles, reports Forbes.
Suspending investments in EU countries that voted for tariffs?
In a closed-door meeting on October 10, the ministry suggested to company representatives that they halt investments in EU countries that voted for tariffs, informed sources told Reuters. They encouraged companies to invest in countries that opposed the tariffs and suggested austerity in countries that abstained.
In a vote in early October, Germany tried to muster the necessary majority to block the decision, but only Hungary, Slovenia, Slovakia and Malta joined it. According to an unnamed source for Reuters, the Commission’s proposal was supported by France, Poland, Italy, the Netherlands, Ireland, Latvia, Lithuania, Estonia, Bulgaria and Denmark.
Croatia abstained, as did Belgium, the Czech Republic, Greece, Spain, Cyprus, Luxembourg, Austria, Portugal, Romania, Sweden and Finland.
According to sources, representatives of several foreign car manufacturers also participated in the meeting.
China’s Geely declined to comment
Chinese carmaker Geely declined to comment on the allegations, while SAIC, BYD and the Ministry of Commerce did not immediately respond to Reuters’ request for comment. Italy and France are among a group of EU countries trying to attract Chinese investment, while warning that a “flood” of cheap Chinese electric vehicles could threaten the domestic industry.
China’s SAIC, China’s second-largest auto exporter, is currently selecting a site for an electric vehicle factory in Europe, and separately plans to open a parts center in France to meet demand for MG cars. The French government did not immediately respond to a Reuters request for comment on the data.
BYD is building a factory in Hungary
The Italian government is in talks with China’s Chery for potential investment, and is also in talks with other Chinese automakers, including Dongfeng Motor. Italy’s industry ministry declined to comment. Dongfeng and Chery did not immediately respond to Reuters’ request for comment on the report.
BYD is building a factory in Hungary, which voted against the tariffs. They are also considering moving their European headquarters from the Netherlands to Hungary because of cost concerns, two sources familiar with the matter said. The companies were also told at the meeting that they should avoid separate talks with European governments on investment and work together to negotiate together, the sources said.
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