Written by Cláudio Afonso | LinkedIn | X
The European Commission has reportedly demanded that Chinese automotive companies disclose detailed business information amid an investigation opened in late 2023 into China’s car makers and the support they receive from the local government.
According to Yuyuan Tantian, a social media influencer affiliated with China’s state broadcaster CCTV, the requested information includes production capacity projections for the next five years, factory output, lists of fixed assets, and any plans to increase production capacity.
Additionally, the Commission has asked for details on parts and raw materials, including names of providers, labor costs, equipment depreciations, pricing strategies, sales terms, and contact information of customers within the European Union.
Other requirements include copies of joint-venture agreements, and complete financial information. These demands come amid increasing tensions between the EU and China over automotive tariffs as Europe announced extra tariffs by up to 38.1 percent last week.
Earlier this week, in a meeting that included representatives from European car manufacturers, China’s auto industry urged Beijing to increase tariffs on imported European gasoline-powered vehicles.
The EU has stated that the higher tariffs will apply to automakers who did not cooperate with the ongoing investigation initiated last year. Chinese electric vehicle manufacturers not included in the “sampled” group will face a 21 percent tariff.
The meeting, reportedly organized by China’s Ministry of Commerce, was attended by major industry players such as SAIC Motor, BYD, BMW, Volkswagen Group, and Porsche, according to the state-backed Global Times newspaper.
The escalating trade measures underscore the deepening rift between the EU and China, as both parties seek to protect and promote their domestic automotive industries in an increasingly competitive global market.
Written by Cláudio Afonso | LinkedIn | X
