China Gets Blackmailed,

Xi Jinping Goes Wild

Jakarta, CNBC Indonesia – The European Union (EU) announced a reduction in additional taxes (extra tariffs) for electric car (EV) companies whose units are produced in China, including Tesla.

The additional tax was imposed by the European Union as an effort to protect local manufacturers. The region considers the Chinese government to be providing subsidies that damage market prices.

Although additional taxes have been reduced for Tesla, BYD, Geely, and SAIC, the Xi Jinping government continues to criticize the imposition of additional taxes beyond the standard 10% EV import tax.

A spokesman for the Chinese Ministry of Commerce said the European Union’s investigation into China’s subsidy policy for the EV industry was baseless.

The European bloc is considered to be promoting unfair market competition, quoted from CNBC International, Thursday (8/22/2024). “China will take various measures to counter our rights and the interests of Chinese companies,” said a spokesman for the Ministry of Commerce.

This week, the European Commission, which is the executive body of the European Union, announced a reduction in additional taxes for several EV manufacturers that import their products to Europe from China.

The additional tax for Tesla was set at 9% from the previous 20.8%.

The additional tax policy was first announced by the European Union in June. In response, the Chinese government and the Chinese EV industry said they had legal documents and material evidence to oppose the EU’s decision.

“These documents have evidence that the EU’s practices are unreasonable,” the Ministry of Commerce said.

“The additional tax will disrupt the stability of the EV industry supply including in Europe,” the agency continued.

Xi Jinping’s government has loudly said it will oppose the EU’s policy with all its might.

SOURCE : CNBC INDONESIA