In a move that went unnoticed by most, Russia has imposed punitive tariffs on Chinese cars. The tariffs are higher than those imposed by the EU.
Russia has imposed punitive tariffs on cars from China. This comes after a period of increased sales of Chinese cars in the country.
The punitive tariffs are part of a series of measures by Russia aimed at limiting the import of foreign goods and promoting domestic production.
Russia has imposed punitive tariffs on Chinese cars. The tariffs are higher than those imposed by the EU. The move comes after several Chinese car brands, such as Volvo's owner Geely Holding and Chery, have seen increased sales in Russia.
After Russia's invasion of Ukraine in 2022, European automakers withdrew from the Russian market, making way for Chinese competitors to increase their sales. Last year, overall car sales in Russia increased by 56 percent.
China has benefited from this development. Geely, which shares a majority stake with Volvo Cars, saw sales increase by 59 percent.
The Chinese sold 157,000 cars in Russia last year. But now they face new challenges. However, Russia has also imposed punitive tariffs on several goods from China.
This is what Newsweek writes.
Russia wants to reduce its dependence on China. Therefore, the Russian authorities want Chinese manufacturers to move their factories to Russia.
The research firm Rhodium Group estimates that the good times for Chinese car brands in Russia are over. Russia, like several countries in Europe, is concerned about becoming a market for cheap Chinese goods.
In the Kremlin, the government would prefer not to see Russia become a place where Chinese products are "dumped." According to the Russians, this would make it more difficult for the country's own companies to compete.
And if there are to be Chinese cars in Russia, the government in Moscow prefers that production take place on Russian soil.
This shows that even countries with close ties to China are against becoming a market for Chinese overcapacity, says analyst at Rhodium Group, Gregor Sebastian.
Russia hopes the tariffs will encourage Chinese manufacturers to move their production to the country, but so far they have been reluctant to share their technology with Russia.
Great Wall Motors is the only Chinese manufacturer with factories in Russia. State-owned company JAC supplies engines and parts to Russian car brand Sollers, which builds the cars under license.
Geely, on the other hand, builds cars in neighboring Belarus through a partnership with the Belarusian government.
