The Global Implications of EU Tariffs on Chinese EVs

By SHANG-JIN WEI – Project Syndicate

The investigators sent requests for cooperation to all Chinese EV producers, and selected three from among those who complied: BYD, Geely, and SAIC. They then pored over those companies’ records and interviewed company insiders and industry experts.

Concluding that the rates of subsidies are 17.4% at BYD, 20% at Geely, and 38.1% at SAIC, the investigators set tariffs on each company accordingly. All other EV producers who agreed to cooperate with investigators will face a tariff of 21% (the weighted average of the three), while producers who have not pledged cooperation will be subject to a 38.1% tariff.

The EU’s findings provide insight into the true nature of the United States’ 100% “anti-subsidy” tariff on Chinese EVs. The US tariff, announced last month (with no serious investigation), is so much higher than any reasonable estimate of Chinese subsidies that its protectionist intent is obvious.