The European Union has decided to impose duties on imports of electric vehicles from China starting Wednesday due to a trade dispute over Chinese government subsidies influencing European markets and Beijing’s growing exports of green technology to the bloc. Sales of Chinese-built electric cars in the EU have rapidly increased, raising concerns about unfair competition and undercutting European industry prices. The duties will be in place for five years unless an alternative solution is found. Chinese manufacturers such as BYD, Geely, and SAIC will face duties ranging from 17% to 35.3%, while other manufacturers, including Western companies like Volkswagen and BMW, will face duties of 20.7%. Tesla will have a duty rate of 7.8%. China has objected to the measures, calling them protectionist and unfair, and has vowed to take necessary measures to protect Chinese companies. The decision has faced opposition in Germany, with the head of the auto industry association warning that it poses a risk to free global trade and could lead to a broader trade conflict. The commission alleges that China has expanded its market share in the EU with the help of subsidies throughout the production chain, raising concerns about the EU’s ability to produce its own green technology and potentially threatening millions of jobs in the auto industry and related sectors.
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