Europe also increases duties on Chinese electric cars. What if China “revenge” with batteries?

The European Commission has announced that from July duties will rise up to 38.1%. China: "Ready to react"

ROME – The United States had raised duties on the import of electric cars from China to 100%. Europe is more moderate, but follows suit: the European Commission has announced that from July duties will rise from 10% to a range varying between 17% and 38.1%. It’s a real trade war, and in fact Beijing hasn’t taken it well: “We are ready to react“.

The West accuses China of unfair competition: Chinese manufacturers receive huge subsidies from the government, and are thus able to invade the world market by offering cars at prices below the cost of production. While the investigation into subsidies announced by Ursula von der Leyen is still ongoing, the Commission has however decided to take a step forward: from 4 July the duties will reach 17.4% for BYD, 20% for Geely, and 38.1 for SAIC.

In reality, Spain and France would have wanted even harsher measures, but Germany, which has close ties with the Chinese car industry, fears possible retaliation from China, which could respond with other or, worse, with a crackdown on the marketing of batteries and other technological components on which Western industry depends.