The Chinese Government is preparing to retaliate against the European Union’s recent implementation of “additional taxes” on Chinese car brands. Here are the details.
China to Impose Extra Taxes on German Automakers!
The tension between the European Union and the Chinese Government could be described as hanging by a thread. Relations between the two bodies are deteriorating day by day, and the trade measures and decisions taken are significantly impacting manufacturers on both sides.
Recently, the European Union took new measures against Chinese car manufacturers. These measures, described as being taken to protect European manufacturers and to not disrupt market balances, subjected Chinese-origin cars to an additional tax rate of up to 38.1%.
The extra tax rates vary from brand to brand. For example, BYD, a popular brand in Turkey as well, faces a rate of 17.4%, Geely 20%, and SAIC, owned by the Chinese state, 38.1%. Although these rates might seem small, they are causing Chinese brands to lose their appeal in European markets.
In response, China has begun to take countermeasures. According to a report by Bloomberg, last weekend, Chinese Commerce Minister Wang Wentao had a special meeting with German Economy Minister Robert Habeck. During this meeting, they discussed the decision of the Chinese government to impose additional taxes on German automotive brands due to the decisions made by the European Union. It was reported that Minister Habeck viewed this decision favorably.
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