BYD Auto, from the Chinese government more than 3 billion euros for

Dumping, or unfair competition from large companies that import products into the European market at a price much lower than the market price. Only possible thanks to the government subsidies these companies enjoy in their home country. This is an alleged violation that the European Union is investigating, in relation to Chinese electric car manufacturers.

But, in economic terms, how much are these subsidies?

The report of the Kiel Institute of World Economy, an economic research center located in the German city of the same name, tries to answer this question. A report that highlights two facts: practical All power producers operating in China enjoy government incentivesand they all enjoy great incentives compared to European companies.

The report focuses in particular on BYD Auto, a brand that came to the attention of non-experts at the end of 2023, when, surpassing Tesla, it became the first manufacturer in the world to sell electric cars.

According to data from the research center, the Chinese government gave a subsidy of 3.4 billion euros to BYD from 2018 to 2022. A subsidy aimed at making the brand a world leader in electric vehicles.

Electricity: there is not a leaf that moves in China that the government does not want

It’s not just direct subsidies though: BYD Auto would also enjoy favorable prices from local manufacturers for the purchase of components for its electric vehicles. According to the report, BYD will be the long arm of the Chinese government, the leader of the strategy that sees China ready to become the new center of gravity of the automobile industry.

If BYD Auto is the most exemplary case, there won’t be a Chinese electric car manufacturer that doesn’t receive massive government subsidies. Both direct and indirect.

If you look at the data, GAC and Geely are also among the most supported companies. Tesla’s second position is then surprisingwhich despite not being Chinese was able to enjoy more than 400 million euros in subsidies in 2022 alone.

To cope with this situation, an increase in duties in Europe, which could arrive as early as July 2024

The report from the Kiel institute – an institution that has a lot of influence in German politics – therefore seems to fully confirm the fears of the European Union, which launched the famous investigation in October last year.

The investigation has now reached a turning point: the EU itself has confirmed that it has gathered enough evidence and, according to those in the know, will increase tariffs on electric cars produced in China as early as July 2024 to combat this dumping phenomenon. . The general opinion is that from the current 10%, the tax on electric cars imported from China could rise to 27.5%. In practice, such responsibility is used by the United States.

The EU may increase tariffs on electric cars produced in China as early as July