EU countries have given the final go-ahead for high additional duties on electric cars made in China, despite strong opposition led by Germany and fears it would trigger a trade war with Beijing.
The European Commission, which provisionally approved the move in June after an investigation found that Beijing's state aid to carmakers was unfair, now has the power to impose high tariffs for five years from the end of October.
Ten countries, including France, Italy and Poland, have backed the imposition of duties of up to 35.3 percent, which would complement existing duties of 10 percent, several European diplomats told AFP.
Only five, including Germany and Hungary, voted against and 12, including Spain and Sweden, abstained.
Although the tariffs did not get the support of a majority of countries, the opposition was not enough to block them - it would have taken at least 15 countries representing 65% of the bloc's population to do so.
That leaves the choice for further action in the hands of the European Commission, which "can be expected to take a decision in line with its proposal," an EU diplomat said.
China has branded the new tariffs as "protectionist" and warned that they would trigger a trade war.
France v Germany
The extra duties also apply at different rates to cars made in China by foreign groups, such as Tesla - which is set to face a 7.8% duty.
Brussels says the aim is to protect European carmakers in a crucial industry that employs around 14 million people across the European Union but does not benefit from large state subsidies as in China.
In recent months, Canada and the United States have imposed much higher duties of 100% on Chinese electric car imports.
The EU duties have pitted France and Germany against each other, with Paris arguing that they are necessary to level the playing field for EU carmakers with those from China.
But Germany, which is known for its strong auto industry and its key manufacturers, including BMW, Volkswagen and Mercedes, have invested in China, says the EU risks hurting itself with the tariffs, and has called for talks with Beijing to continue.
Volkswagen described the vote as the "wrong approach".
"We maintain our position that the planned duties are the wrong approach and will not improve the competitiveness of the European auto industry," VW said in a statement, calling for more talks with Beijing "to prevent any countervailing duties and thus trade conflict."
In an indication of the fears spreading in Europe, Spanish Prime Minister Pedro Sanchez reversed course and last month asked Brussels to "reconsider the issue", despite Madrid's initial support.
Hungary was also opposed, and ahead of the vote Prime Minister Viktor Orban described the tariffs as "the next step in the economic cold war".
Beijing has threatened to retaliate decisively and has already begun inspections of European brandy, dairy products and pork imported into China.
China has tried in vain to stop the tariffs, hoping to resolve the issue through dialogue, but so far the talks have not led to an agreement that satisfies the EU.
The Commission has said that any duties could be lifted at a later date if China addresses the EU's concerns.
The trade tensions between China and the EU are not limited to electric cars, with investigations launched by Brussels also targeting Chinese subsidies for solar panels and wind turbines.
The bloc faces a difficult task as it tries to promote its clean-tech industry and invest in the green transition without triggering a painful trade war with China. | BGNES
