But some EU member states and automakers fear that the measures could do more harm than good.
The new import taxes will also hit European car brands like VW, BMW, and Dacia.
The automakers manufacture a large chunk of their EVs in the worlds second largest economy.
In response to the EU announcement, Chinas Ministry of Commerce hasurgedthe bloc to immediately correct its wrong practices.
The ministry warned that the measures risk hurting both Chinese and European consumers.
In 2023, Hungary alone captured 44% of all Chineseforeign direct investmentinto Europe.
Thats more than France, Germany, and the UK combined.
And yet, the tariffs could actually be good news for Hungary.
Cars built in BYDs factory there wont face tariffs at all, because theyll be made within EU borders.
Hungarys willingness to work with China could make itthe go-to location for EV production in Europe.
It could also earn it some pretty big enemies closer to home.
What now?
Under the EUs proposal, BYD will see the lowest tariff rate of 17.4%.
This is because the company provided evidence to the Commission that it had benefited from less state support.
If talks between the EU and China prove fruitless, prices of China-made EVs will go up in Europe.
The real losers could be European automakers and the EUs green ambitions.
Story bySion Geschwindt
Sion is a freelance science and technology reporter, specialising in climate and energy.
