BMW opposes European sanctions against Chinese manufacturers
This page is translated from the original post "BMW s’oppose aux sanctions européennes contre les constructeurs chinois" in French.
- 28/01/2025 10:48
One could, however, imagine European manufacturers like BMW being pleased that the Union protects them from the nasty Chinese manufacturers…
Tesla and BMW have thus allied with Chinese electric vehicle manufacturers to challenge the tariffs imposed by the European Union on EVs produced in China. The two manufacturers have filed appeals with the Court of Justice of the European Union.
This initiative follows similar efforts made last week by Chinese manufacturers like BYD, Geely, and SAIC, who are questioning the EU’s import surcharges, which can exceed 35%. Olof Gill, spokesman for the European Commission, confirmed at a press conference on Monday that the EU is ready to defend itself in court. For BMW, the stakes go beyond just avoiding the full brunt of Chinese retaliatory measures against European manufacturers. BMW Group also produces several models in China, such as the electric Mini Cooper and the electric Mini Aceman, and is thus impacted by these sanctions aimed at protecting it. The European snake biting its own tail…
Despite strong opposition from many industrial players within member states, the European Commission adopted in October a proposal to apply countervailing tariffs on Chinese EVs. Under this tariff regime, Tesla, an American manufacturer producing some of its models in China, must pay a duty of 7.8% after requesting an individual review. BMW sees its local subsidiaries subjected to a tax of 20.7%. Chinese manufacturers face different rates: 17% for BYD, 18.8% for Geely, and 35.3% for SAIC.
Last November, China took the case to the World Trade Organization (WTO) to contest the EU’s final decision regarding these countervailing measures targeting Chinese EVs. This legal battle highlights the growing tensions between the EU and EV manufacturers. The stakes are high: finding a balance between protecting the European industry and maintaining competitiveness in a globalized market. The outcome of these proceedings could redefine trade relations in this strategic sector.
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