The Chinese government is preparing a new tax measure in response to the “additional tax” imposed on Chinese car brands. According to emerging information and reports, the Chinese government has retaliated against the European Union’s new tax regulation targeting Chinese car brands. As a result, European car brands selling in China will now face additional taxes. Here are the details…
The Chinese government will start imposing additional taxes on German car manufacturers!
The relationship between the European Union and the Chinese government is extremely fragile. Relations between the two parties are deteriorating and becoming increasingly antagonistic. Moreover, the trade measures and decisions taken by both sides are significantly impacting the manufacturers.
Recently, the European Union implemented new measures against Chinese car manufacturers. It was announced that these measures were taken to protect European manufacturers and maintain market balance. According to the new regulation, Chinese-made cars would be subject to an additional tax of up to 38.1%.
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These additional tax rates vary by brand. For example, BYD, a popular brand in Turkey, is subject to a 17.4% tax, Geely to 20%, and the state-owned SAIC to 38.1%. Although these rates may seem small, they reduce the attractiveness of Chinese brands in the European market.
In response, China has also started taking countermeasures. According to a report by Bloomberg, Chinese Minister of Commerce Wang Wentao held a private meeting with German Minister of Commerce Robert Habeck last weekend. In this meeting, China’s decision to impose additional taxes on German automotive brands due to the European Union’s measures was discussed. It is reported that German Minister of Commerce Robert Habeck is receptive to the decision.
