trade

Chinese Cunning, European Neglect

Chinese companies are moving production to Europe, setting up joint ventures with Western companies, and hiring more foreigners. They hope to conceal their origins and dodge customs duties.

Street ads for Chinese cars are flooding Polish cities. “The world’s number one manufacturer of electric and hybrid cars”, is how BYD promotes its Seal SUV at Warsaw’s Chopin Airport and train stations.

The campaign coincides with the entry into force of EU tariffs on electric cars from China which, depending on the manufacturer, range from 7.8 percent to 35.3 percent and are imposed on top of the tariffs already in place on imported cars. The European Union made its decision in October 2024 following an anti-dumping investigation showing that Chinese-made electric cars are subsidised by the government, which makes them around 20 percent cheaper than EU-made vehicles.

While the tariffs imposed by Brussels are significantly lower than those imposed by the US and Canada, they were introduced at a time when Chinese manufacturers were busy seeking to strengthen their position on the European market. Of all new cars registered in the EU in 2024, only 1 percent came from China, according to ING estimates. “However, for battery electric vehicles (BEVs), this share is already over 8 percent, reflecting a rapid increase over the past five years”, reported ING.