China urges EU to reverse EV tariffs, Chery undeterred

illuminem summarizes for you the essential news of the day. Read the full piece on Reuters or enjoy below:

🗞️ Driving the news: The EU and China are engaged in a trade conflict over electric vehicle (EV) tariffs, with Brussels imposing additional tariffs ranging from 17.4% to 38.1% on Chinese EVs
• China has rejected the EU and US claim that state subsidized exports have caused a threat to overseas automakers, arguing that raised duties will hinder climate goals and raise consumer costs

🔭 The context: This clash comes as EU views Chinese state subsidies for the industry as unfair competition
• In order to mitigate tariff impacts and boost sales amidst slowing domestic markets, Chinese companies like Chery, BYD, and Great Wall Motor are establishing manufacturing sites in Europe 

🌍 Why it matters for the planet: The tariffs could slow the adoption of EVs in Europe, undermining global climate-change goals by making EVs more expensive for consumers and potentially reducing the overall market for cleaner vehicles
• China’s automotive industry, a mix of state-owned and private firms, has cost advantages over foreign competitors due to state subsidies and dominance of battery-minerals refining

⏭️ What's next: EU provisional duties are set to apply by July 4, although Brussels seemed to have left space for mutual consultations to find a solution
• Chinese automakers may pass some of the increased costs to consumers but remain committed to expanding their presence in Europe

💬 One quote: "We urge the EU to listen carefully to the objective and rational voices from all walks of life, immediately correct its wrong practices, stop politicising economic and trade issues, and properly handle economic and trade frictions through dialogue and consultation," said Chinese foreign ministry spokesperson Lin Jian

📈 One number: Chinese EV makers like BYD and Geely saw stock movements in response to the tariff news, with BYD's Hong Kong-listed shares closing up 5.8%, while SAIC Motor's Shanghai shares fell 1.6%

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