France finds a way to de-support Chinese electric cars without breaking international trade rules

France finds a way to de-support Chinese electric cars without breaking international trade rules

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The French authorities are concerned about the “invasion” of electric cars of Chinese origin that the European market has been experiencing for some time. President Emmanuel Macron He even claimed last year that the EU is too open to foreign industry, defending the need to protect indigenous manufacturers.

Bruno Le MaireFrench Finance Minister, is of the same opinion, since in 2022 he declared that “It may be time to reserve aid for electric cars produced on European territory or for vehicles that strictly and rigorously comply with the new environmental regulations. We need to play by the same rules if we want to defend our industries, our jobs, and our technology. I think it’s time we started thinking about this idea in Europe.”.

The problem is that excluding electric cars from aid programs based on their origin would infringe the rules of the WTO (World Trade Organization). However, the French government seems to have found the formula to de-subsidize models from China without breaking these rules.

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Macron will present this Thursday a series of measures that will condition access to the so-called “ecological bonus” for electric cars based on the pollution generated during their production. Given the China’s energy mix remains heavily dependent on coal, vehicles manufactured within its borders would be excluded. Something similar could happen with India and Morocco.

Tesla Model Y

Will the Dacia Spring run out of aid?

This would leave out of play two of the best-selling models on the French market, the dacia spring and the Tesla Model Y, since access versions of the latter are imported from China. All in all, the latest reports indicate that Giga Berlin has already started producing the Model Y RWD locally, so ultimately the premium SUV would not be affected.

As for the Spring, rumors indicate that its production could be relocated next year, coinciding with the launch of its second generation. One of the most powerful places is Novo Mesto (Slovenia)that in 2024 the Renault Twingo E-TECH will cease to be manufactured.

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If these kinds of measures start to spread to other countries, Chinese manufacturers may speed up their plans to build plants on European soil. groups like BYD any chery They are already looking for locations, with Spain being one of the preferred candidates for both companies.

Source | caradisiac