With Chinese electric vehicle sales continuing to grow worldwide, the EU says Chinese car makers benefit from unfair state subsidies – something that China denies.
Provisional tariffs are being imposed on imports, but experts say they may have minimal effect.
CGTN’s Ken Browne reports.
Provisional tariffs are being imposed on imports, but experts say they may have minimal effect.
CGTN’s Ken Browne reports.
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NewsTranscript
00:00This is the BYD Explorer No. 1, a roll-on, roll-off giant that can ship 7,000 cars at
00:09a time.
00:10On its maiden voyage to Spain on August 14, it delivered 1,000 brand-new BYD CLU cars.
00:18And every single one was sold within weeks.
00:21BYD Spain says business is booming and sales are up 1,000% year on year.
00:29We started only 17 months ago with two dealers.
00:33Today we have 30 dealers and before the end of 2024 we will have more than 40.
00:39Positivity remains despite tariffs of between 17 and 38% being imposed provisionally on
00:46Chinese EVs in Europe.
00:49The EU says Chinese carmakers benefit from unfair state subsidies, something that China
00:54denies.
00:56But the penalties are far from the 100% sanctions in the US and Canada.
01:01And while Europe is divided on the issue, experts say that tariffs won't halt the rise
01:06of Chinese EVs.
01:09The German government is not in favor of these tariffs.
01:14It's more the French and Italian producers who are afraid that their small cars cannot
01:18compete with Chinese small cars.
01:20And that's why they are pushing to have these tariffs.
01:23They have enough votes in the European Council to have these tariffs conferred.
01:28I think the impact will be limited.
01:32One way that Chinese manufacturers can avoid tariffs is by building factories here in Europe.
01:37BYD has already announced one in Hungary and another Chinese carmaker, Chery, is going
01:42to start making cars in Barcelona.
01:45Good news and some welcome jobs for the Spanish economy.
01:51Here at one of BYD's busy Madrid dealerships, customers care much more about the value for
01:56money than global trade disputes.
01:59In the end, I'm only interested in the final price the dealer can offer me.
02:03Yes, I'm convinced it's time to talk numbers now.
02:07Sales of Chinese EVs continue to accelerate in Europe, despite some governments trying
02:12to put on the brakes.