The European Union decided on Wednesday to raise taxes on Chinese electric cars. They’re worried that China’s help for its car industry is making it hard for European carmakers to compete.
The European Commission, which makes decisions for the EU, said it would put extra taxes on Chinese cars. These taxes could be as high as 38%, up from 10% before.
The commission talked to China about this problem. They want to find a solution together. If they can’t, the new taxes will start on July 4.
Electric cars are the latest problem in a bigger fight about trade. Europe thinks China gives too much help to its green technology companies, like those making solar panels and wind turbines.
More and more electric cars from China are coming to Europe. Some are from Western brands like Tesla and BMW, which have factories in China.
But Europe says Chinese companies like BYD and SAIC are selling more cars here, and they’re cheaper because of help from the Chinese government.
Last year, the commission started looking into China’s help for electric cars. They found that it’s not fair to European electric car companies.
The extra taxes will be different for each company. BYD will have to pay 17.4% more, Geely (which owns Volvo) will pay 20% more, and SAIC will pay 38.1% more.
China’s Foreign Ministry didn’t like this decision. They said the EU is just protecting its own companies and that China will do what it needs to protect its interests.
Recently, the U.S. also put big taxes on Chinese electric cars and other things like batteries and solar panels. President Biden said China’s help for its companies makes it hard for other countries to compete.
