EU Announces New Tariffs of up to 38 Percent on Electric Vehicles From China |
The new European Union (EU) tariffs result from a monthslong investigation into Chinese subsidies on electric vehicles (EVs). Beginning next month, new levies between 17 and 38 percent will be added onto an existing 10 percent import tariff, pushing the total to nearly 50 percent for some Chinese EVs. The European Commission said its probe detected that Chinese producers benefited from “unfair subsidies” and their imports posed a threat to European industry, while China’s commerce ministry called the new tariffs “ill-informed and lawless.” The commission said it reached out to China to resolve the issue, but without resolution, the duties will apply starting on July 4.
Today’s set of tariffs have been a point of tension inside the EU, as countries such as Germany are worried about the potential impact of Chinese retaliation on their auto sectors. Berlin has pressured European Commission President Ursula von der Leyen to drop the probe as she is vying for a second term, unnamed EU officials told the Financial Times. The EU nonetheless continues its anti-subsidy investigation and has said that cooperating firms will receive lower tariff rates. China exported more than $10 billion in EVs to the EU last year. (FT, Nikkei)
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“The rise of Chinese EV makers means that German automakers will not enjoy the same level of profitability in China and will be rivaled in their dominant position in Europe, and may possibly even lose the competition in their home market to highly competitive Chinese electric vehicles that are made possible partly due to continued subsidies by the Chinese government,” CFR experts Liana Fix and Zongyuan Zoe Liu write for Foreign Policy.
“China’s exporting its way out of economic woes and causing massive trade imbalances, which threaten Europe’s economy even more than they threaten America’s,” the Center for European Reform’s Sander Tordoir writes for Politico. “China will, of course, strike back. But it can’t miss out on access to both the U.S. and EU markets—which may limit retaliation and give the EU leverage.”
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U.S., Japan, Set up Working Groups on Defense Production |
The countries mapped cooperation on missile production, ship and aircraft repair, and supply chain resiliency at a series of Tokyo meetings that wrapped up yesterday. (Nikkei)
This Backgrounder details the long-standing U.S.-Japan alliance.
Hong Kong: Authorities invoked a new national security law today to cancel the passports of six pro-democracy activists currently residing in the United Kingdom. Last year, Hong Kong police announced a monetary reward for information that could lead to their arrest, prompting sharp criticism from Western governments. (AP)
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World Bank: India Will Be World’s Fastest-Growing Large Economy in 2024 |
India is poised to grow 6.6 percent in fiscal year 2025, the World Bank said yesterday in a new forecast. The bank also raised its annual global growth prediction to 2.6 percent, saying the revision was due to stronger-than-expected growth in the United States, which is expected at 2.5 percent. (Business Standard, WaPo)
India/Russia: India asked Russia for a “verified stop” in its military recruitment of Indian nationals after two additional Indians were killed in the war in Ukraine, India’s foreign ministry said yesterday. Four Indian nationals have been killed so far in the war. (The Wire)
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Middle East and North Africa |
Washington Evaluates Hamas Response to Cease-Fire Proposal |
Hamas requested changes to a draft cease-fire deal that were not immediately made public, though the group said they prioritized the need to “completely” end the war. While talks continue, Iran-backed Lebanese militant group Hezbollah fired a barrage of rockets into northern Israel today in response to the killing of one of the group’s top commanders. (FT, AP)
Syria: Children and adolescents are enduring overcrowding and isolated conditions in prisons and detention camps for suspected self-declared Islamic State fighters and their family members, CNN reported. The United Nations and human rights groups have warned that holding the children indefinitely prolongs a legal limbo and humanitarian crisis. The head of U.S. Central Command said it presents a risk of radicalization.
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ICC Prosecutor Calls for Evidence on Alleged International Crimes in Sudan |
The International Criminal Court (ICC) prosecutor issued a public appeal yesterday for information and evidence as the court investigates allegations of attacks against civilians, sexual violence, and ethnically motivated attacks in Sudan’s civil war. His appeal came a day after the UN International Organization for Migration said the number of displaced people inside the country has surpassed ten million. (Al-Monitor)
This Backgrounder by Claire Klobucista and Mariel Ferragamo looks at the role of the ICC.
Ghana: Accra cemented plans with a group of creditors to restructure some $5.4 billion in debt as part of an agreement originally reached in January, Ghana’s finance ministry said today. The new memorandum of understanding is expected to unlock a $360 million loan from the International Monetary Fund. The cedi, Ghana’s currency, has lost 20 percent of its value against the U.S. dollar this year. (Bloomberg)
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Ukraine to Privatize State Companies in Fundraising Drive |
Kyiv will auction around twenty state-owned companies beginning this summer. The push aims to raise war funds and strengthen the country’s faltering economy, which has a budget “in the red,” Ukraine’s deputy economy minister told the New York Times.
At this CFR meeting, U.S. Special Representative for Ukraine’s Economic Recovery Penny Pritzker unpacks potential approaches to reconstruction.
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Saudi Sovereign Investment Fund Holds First Latin America Conference in Brazil |
This week’s conference in Rio de Janeiro is part of Riyadh’s economic diversification strategy, as Saudi firms have bought stakes in Brazilian agriculture and mining companies and the two countries have signed a five-year defense cooperation agreement. Brazil’s exports to Saudi Arabia hit a ten-year high last year. (Bloomberg)
Haiti: The transitional governing council appointed a cabinet yesterday that includes several figures from outside the country’s political class, in sharp contrast to the previous administration. The changes come as Haiti is preparing to accept a UN-backed, Kenya-led international security mission to help address surging gang violence in the country. (Reuters)
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U.S. Bans Imports From Three Chinese Firms, Citing Forced Labor |
The Department of Homeland Security blacklisted a seafood processor, shoemaker, and an aluminum and carbon graphite manufacturer, saying they used forced labor in the Chinese territory of Xinjiang. The firms did not immediately comment on the matter. (WSJ) |
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