EU countries overcome German resistance to back duties on Chinese EVs

BRUSSELS —  European Union member countries did not oppose a proposal on Friday to impose duties on Made-in-China electric vehicles, as expected, overcoming a last-minute push by German Chancellor Olaf Scholz to stop them.

Ten countries voted in favor and five against, while 12 abstained, several diplomats familiar with the results of the vote in the Trade Defence Instruments Committee told POLITICO.

Formally speaking, the experts united neither in favor nor against the duties. That means that, under its rules of engagement, the committee delivered “no opinion” on the European Commission’s plans, said five EU diplomats, who were granted anonymity due to the sensitivity of the matter.

In practice, that means the Commission is free to decide on next steps.

The Commission — which conducted a nearly year-long investigation into unfair Chinese state subsidies for its EV sector — can now decide on when to impose the duties of up to 35.3 percent.

One EU diplomat told POLITICO the Commission would publish the legal text for the duties before Oct. 30, when the executive is legally required to complete the probe. They would take effect from the day after.

That would still leave time to seek a negotiated settlement on setting guaranteed minimum prices for Chinese EVs that would offset the impact of state subsidies for its manufacturers.

The results of Friday’s vote were similar to an earlier, non-binding vote in July — although there were a few notable moves.

Along with Germany, four other countries voted against the duties, according to a tally seen by POLITICO. Viktor Orbán’s Hungary and Robert Fico’s Slovakia were among them, as was Malta. Slovenia voted against on Friday, having abstained in July.

And, after Prime Minister Pedro Sánchez called on the EU to reconsider the duties on a visit to China last month, he indeed changed his own country’s vote from being in favor to abstaining.

Additional reporting by Barbara Moens. This story has been updated.