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  5. UK issues warning over 'dumping' of cheap Chinese cars

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UK issues warning over 'dumping' of cheap Chinese cars

Transport Secretary Mark Harper says he wants to ensure a 'level playing field'; in the electric vehicle market Photo: HANNAH MCKAY/REUTERS

Speaking at the SMMT Connected conference in London, Mr Harper said: “First of all, I understand why some people are concerned about this.”

” Question, which I think most people are concerned about is that we are concerned about costs and competitiveness.

“We have very strong enforcement in this country, with a trade remedies regime that affects not just the auto industry but across all markets, to ensure fair international trade and no dumping or unfair subsidies.

“So I think we have a good legal structure. This is a structure that will ensure fair competition and a level playing field.»

Mr Harper said he would like to see as many producers in the market as possible, but added: «What's important is that it's a fair and competitive environment.

“I know that if competition is fair, British manufacturers will be absolutely at the table and we can compete with anyone in the world both domestically and through exports. technologies around the world.»

The remarks are the first public acknowledgment by a minister that the UK could resort to trade tariffs if Chinese cars are found to have benefited from large government subsidies.

Since 2009, China's central and local governments have subsidized the domestic electric vehicle business. worth $100 billion (£78 billion), according to a study by the Washington-based Center for Strategic and International Studies (CSIS).

The claims have prompted an EU investigation into subsidies, which could put pressure on the UK government to take action if Chinese brands are found to have received an unfair advantage.

Meanwhile, President Joe's administration Biden in the United States called Chinese electric cars a threat to national security and threatened to impose punitive restrictions on them.

Until now, the UK government has insisted that it has not launched any investigation of its own and that such a move could only be prompted by a formal complaint from car makers.

But last month it emerged that the Department for Business and Trade had launched preparations and is exploring various options.

Meanwhile, Giorgia Meloni, the Prime Minister of Italy, woos Chinese electric car manufacturer Chery Automobiles amid the ongoing war. with national champion Stellantis.

Ms Meloni's government is in talks with the state-owned group, China's third-largest car maker, to set up a European production plant as the country seeks to achieve ambitious production targets.< /p>

Chinese manufacturers BYD and Great Wall Motor have also been briefed on the development plan, with Chery emerging as the leading candidate to open the new plant, Reuters reports.

Chery specializes in electric vehicles (EVs) and has done so before. announced plans to open a plant in the UK within the next decade.

Italian Prime Minister Giorgia Meloni lashed out at Stellantis, saying: the car is being sold as an “Italian jewel”; must be made in the country. Author: KENZO TRIBOUILLARD

Italy aims to increase annual car production from 800,000 vehicles per year to 1.3 million. Her government wants Stellantis, Italy's only remaining automaker, to help achieve the goal. The group was called upon to increase production from 750,000 to one million cars per year.

However, this led to tension between the two sides. Earlier this year, Meloni criticized Stellantis, saying a car marketed as an «Italian jewel» should have been made in this country.

Stellantis is controlled by the Italian Agnelli family, which founded Fiat, but Meloni's supporters fear that Too much car production is moving overseas.

The company has faced criticism from Ms. Meloni for abandoning its Italian roots and listing in New York. .

Bringing Chery to Italy could help build 300,000 more cars, helping the government reach its 1.3 million vehicle target. Chery has been contacted for comment.

In addition, industry executives warned on Thursday that the UK is falling behind Europe and the US on self-driving cars as slow progress in regulation forces start-ups to take their technology overseas.

Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders (SMMT), on Thursday urged MPs to quickly pass new laws to legalize fully autonomous vehicles on the roads, noting that other Western governments have already done so.

p>

The Automated Vehicles Bill was announced in the King's Speech in November. It was first discussed in 2018. It is currently going through parliament.

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