It was already last year that the European Commission began to investigate whether Chinese cars compete on unfair terms in Europe, due to extensive subsidies from the Chinese state.
Sales of Chinese cars, which are usually among the cheapest on the market, have increased very strongly over the past year.
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Have proof of subsidies
Now they claim to have evidence that the Chinese electric cars benefit from unfair subsidies, reports Reuters.
As early as Thursday, March 6, they will therefore start noting all Chinese electric cars that pass EU customs. This means that the cars may be subject to penalty tariffs afterwards.
The investigation into the alleged unfair subsidies is still ongoing, and is not expected to be completed until November.
However, Chinese electric cars may be subject to provisional penalty taxes as early as June.
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Not sure who pays
The Chinese Chamber of Commerce has said that it is “disappointed” by the announcement, and that the increased imports of Chinese electric cars into Europe are due to increased demand.
The EU justifies the decision by saying that European car manufacturers could suffer permanent damage if they are forced to compete with subsidized Chinese electric cars before the investigation is completed.
It is currently unclear how high the potential fines will be, or whether the buyer of the car or the importer is liable to pay.
It is also not clear whether the decision will only apply to electric cars from Chinese brands, or if China-built cars from brands such as Volvo, BMW and Tesla are also covered.
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