Electrified tensions: EU's proposed tariffs on Chinese EVs

In October 2023, the European Union launched an investigation
into whether Chinese electric vehicle (EV) manufacturers were
receiving unfair subsidies which give them an advantage in the
market. In June 2024, the European Commission announced the
preliminary conclusion that it would levy additional tariffs of
between 17.4ؘ–38% on Chinese electric vehicles (EVs). This would
be placed on top of an existing 10% import duty. These duties are
set to provisionally come into effect in early July, with a
proposal for permanent measures expected in November, subject to
a decisive vote.

In this episode of The Sound of Economics, Yuyun Zhan sits down
with Alicia García-Herrero and George Magnus to discuss the EV
investigation, the impact of China’s industrial policy on its
mass-production growth model, why this approach is now facing
resistance, and the broader implications of China’s overcapacity
for the EU and the global market.

Relevant publications:
García-Herrero, A. and R. Schindowski (2024) ‘Unpacking China’s
industrial policy and its implications for Europe’, Working Paper
11/2024, Bruegel
Red Flags: Why Xi’s China is in Jeopardy, book by George
Magnus
The story of China’s electric vehicle industry, Bruegel podcast
with Giuseppe Porcaro, Alicia García-Herrero and Zeyi Yang

This episode is part of the ZhōngHuá Mundus series of The Sound
of Economics. ZhōngHuá Mundus is a newsletter by Bruegel,
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