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EU to hit Teslas imported from China with 19% tariffs

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EU to hit Teslas imported from China with 19% tariffs

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Brussels plans to hit Tesla cars imported into the EU from China with tariffs of 19 per cent, a lower rate than those for Chinese electric-vehicle makers.

The European Commission said on Tuesday that Teslas manufactured in China could be subject to an additional levy of 9 per cent on top of existing duties of 10 per cent applied to all foreign-made cars.

The announcement comes after Tesla requested an individual investigation into its operations in China in the hope of avoiding the higher rates that Brussels has applied to Chinese manufacturers of up to 47 per cent.

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Elon Musk’s car company had also complained to European capitals about the probe, an EU diplomat said.

Tesla did not immediately respond to a request for comment.

EU officials claim that the US company’s Chinese operations have benefited from subsidised rates for land, income tax reductions and other support from Beijing, including beneficial rates when buying batteries.

The levies are part of a more aggressive approach by the EU against heavily subsidised imports from China, particularly in technologies critical for the transition to green energy, including solar panels and wind turbines.

They are the result of an investigation announced by commission president Ursula von der Leyen into Chinese electric vehicle imports last September.

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Brussels said that the probe was based on “growing evidence-based concerns about the recent and rapid rise in low-priced exports of electric vehicles coming from China to the EU”.

China’s commerce ministry on Tuesday said the investigation was an act of “unfair competition”.

The EU “abused the method of sampling to treat different types of Chinese companies differently and distorted the results of the investigation,” said a spokesperson for the ministry. “China firmly opposes and is highly concerned about [the final ruling].” 

Beijing had provided “tens of thousands” of pages of documents to defend itself in EU’s anti-subsidies investigation and both sides had held more than 10 rounds of negotiations since the end of June, the spokesperson added. 

The Chinese Chamber of Commerce to the EU said it was in “firm opposition” to the tariffs and that there was not “sufficient evidence” to show that the European EV industry would be affected by Chinese imports.

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“The competitiveness of electric vehicles made in China is not driven by subsidies but by factors such as industrial scale, comprehensive supply chain advantages and intense market competition,” it added.

China has retaliated to the EU probe by filing a complaint at the World Trade Organization and opening its own anti-dumping probes against French cognac and EU pork imports.

After an initial assessment, the commission announced in June that Chinese vehicle manufacturers including BYD and Geely could be subject to higher than expected tariffs of up to 48 per cent on cars imported into the bloc.

On Tuesday, it marginally lowered these rates after the Chinese companies provided more information. The maximum additional levy was reduced by about 1 per cent.

At present, the duties are being paid in the form of bank guarantees ahead of member states’ approval of the measures by an October 30 deadline. If EU countries vote in favour, the duties will be applied for five years.

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An EU official said there was a “risk” of Chinese manufacturers stockpiling cars ahead of the tariffs coming into force but added, “it takes time to transport them from China”.

Another said there were “intensive” discussions with Chinese counterparts to find “an alternative solution”.

“We are open to China making proposals that would solve the problem in the same manner as a duty, but it is very much up to them,” the official said.

Europe’s electric vehicle industry has been struggling in recent months as consumer sentiment cools. The withdrawal of subsidies for EV purchases in Germany, for example, has also resulted in “substantial year-on-year losses” for manufacturers, according to Schmidt Automotive Research.

SAR found in a separate report published last week that Chinese manufacturers had increased exports to the EU ahead of the final duties being applied.

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Additional reporting by Gloria Li

Video: Joe Biden’s EV crusade has a long way to go | FT Energy Source
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Tim Walz made an impression in China, students and teachers say

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Tim Walz made an impression in China, students and teachers say

Democratic vice presidential candidate and Minnesota Gov. Tim Walz speaks at the 46th International Convention of the American Federation of State, County and Municipal Employees on Aug. 13 in Los Angeles.

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BEIJING — When Vice President Harris picked Minnesota Gov. Tim Walz as her running mate on the Democratic ticket earlier this month, a Chinese woman in Western Australia, thousands of miles away, couldn’t contain her excitement, shouting with joy at the news.

“When I realized that he was the Tim that [was] in my memory, I was amazed, and felt so proud of him,” Christy Dai told NPR by phone from Perth.

In 1989, a 15-year-old Dai met Walz, who became her first foreign English teacher at Foshan No. 1 Middle School in southern China. During that school year, Walz taught English and U.S. history to around 300 students, she says.

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For Walz, it was an introduction to a country that he would return to about 30 times in the ensuing years, by his own reckoning — a cumulative experience that has come under a spotlight since his addition to the Democratic ticket.

But Walz’s record on China, based on the accounts of people who interacted with him on some of those trips, as well as his own words, is hard to put in a box.

At the age of 25, fresh out of college, Walz signed up for Harvard University’s WorldTeach program and traveled to China, where, according to his online biography, he became part of one of the “first government sanctioned groups of American educators” to arrive after the country opened its doors to the world in the 1980s. The ’89-’90 school year started shortly after the Chinese army crushed pro-democracy protests centered on Beijing’s Tiananmen Square in June 1989.

“It was my belief at that time that diplomacy was going to happen on many levels, certainly people to people,” Walz recalled during a 2014 congressional hearing commemorating the 25th anniversary of the Tiananmen crackdown. “The opportunity to be in a Chinese high school at that critical time seemed to me to be really important.”

People-to-people communication

At the high school in Foshan, Walz made a good impression, according to Dai and a former colleague.

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“He was quite lively and very approachable. Whether people understand English or not, he always greets them with hand gestures, appearing friendly and cheerful,” says Lee Nai-Tim, a retired teacher of Chinese language and literature, who was in charge of a class when Walz was teaching there.

Walz was given the nickname “Ah-Tim” by his students and colleagues. In Cantonese, the word “Tim” can be represented by a Chinese character that also appeared in Lee’s name. Lee recalled Walz, with a big smile, saying in Cantonese: “Both you and I are named Tim.”

Lee says Walz was thoughtful and cared for others. Walz was the only teacher at the school who was provided with an air conditioner, but he often left it off.

“At that time, our electricity supply was sometimes unreliable,” Lee says. “Mr. Walz would turn off his air conditioner because when he used it, the lights nearby would dim. It was very hot in the summer, but he chose to go without air conditioning.”

For Dai, Walz represented one of the first opportunities for a close encounter with a person from the West.

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“It was really a fantastic experience for us. And I would say that his time in China, you know, gave us a first glimpse of the outside world. And he was very humble and diligent. He gave us the impression of a Western person that is reliable, that [you] can be friends with,” Dai says.

She says Walz noticed she had a talent in English, and gave her the confidence that inspired her to pursue the language further. She eventually immigrated to Australia, where she has worked as a translator and interpreter for the past 20 years.

“This world needs people like him — people with integrity — to lead,” Dai says.

In the ’90s and early 2000s, Walz deepened his connection with China by leading Minnesota high school students there on summer trips.

Emily Scott, who participated in one of those trips, says Walz encouraged the students to be open-minded, curious and eager to embrace new experiences. He set the tone for the entire journey.

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“I really think he just wanted us to see how far away the horizon actually is,” she says. “He didn’t necessarily want us to love it or hate it. He didn’t necessarily want us to judge it in any way — the world, other people. He just wanted us to know it was there.”

During the trip, Walz encouraged Scott to learn Chinese, a suggestion that later led her to pursue a career that involved repeated trips to China.

Laura Matson, another former student, also traveled to China with Walz. The trip took place during the summer between her junior and senior years of high school.

She described the trip as an “eye-opening, incredible experience.” Matson remembers meeting a group of Chinese girls on an overnight train ride. Matson spoke no Chinese, and the girls didn’t speak English, but they spent a fun evening painting each other’s nails and exchanging magazines.

“We couldn’t connect on a verbal level, but we had a great time together and it was a really important moment for, you know, just recognizing that we can connect with anybody on any level if we put some effort into it,” she says.

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Walz was “delighted to see his students making the kinds of connections and building the kinds of bridges that he had dedicated his career to fostering,” she says.

Republicans are investigating

Altogether, Walz has said he’s made about 30 trips to China.

“I think a lot of people in China feel kind of excited,” says Zhiqun Zhu, a professor at Pennsylvania’s Bucknell University who has studied China-U.S. relations. “Walz had this experience in China, so they assume that he might be kind of pro-China.”

On social media, Republican critics have raised concerns about Walz’s connection with China, with one even labeling him a pro-China Marxist. On Friday, House Committee on Oversight and Accountability Chairman James Comer, R-Ky., said he was launching an investigation into Walz “following reports detailing the Governor’s longstanding connections to Chinese Communist Party (CCP) entities and officials.”

Walz’s team has defended the governor’s record, saying he has stood up to the CCP and fought for human rights throughout his career. “Republicans are twisting basic facts and desperately lying,” Walz spokesperson Teddy Tschann said in a statement. “Vice President Harris and Governor Walz will ensure we win the competition with China, and will always stand up for our values and interests in the face of China’s threats.”

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In a 2016 interview with Agri-Pulse, an agriculture information service, Walz said he did not believe the U.S.-China relationship needed to be adversarial.

“I totally disagree [with the idea] and I think we need to stand firm on what they’re doing in the South China Sea,” he said, referring to China’s expansion of islands and assertive posture in disputed waters. “But there’s many areas of cooperation that we can work on.”

Upon returning to Nebraska in 1990, Walz told a local newspaper that he believed the Chinese people had been mistreated by their government for years.

“If they had the proper leadership, there are no limits on what they could accomplish. They are such kind, generous, capable people,” he said in an interview with the Star-Herald.

As a congressman, Walz co-sponsored legislation that took a firm stance on China. He met with the Dalai Lama and Hong Kong democracy activist Joshua Wong, both of whom are viewed with hostility by Beijing.

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Walz also served on the Congressional-Executive Commission on China, which monitors human rights and the rule of law in the country.

During the hearing on the 25th Tiananmen crackdown anniversary, he said: “If we do not commemorate and we do not remember those who were willing to risk all, it puts all of us at risk of history forgetting the lessons that were there.”

Zhu, the professor at Bucknell University, suggests that Walz’s firsthand experience with China could be an asset if he were elected.

“I think if we have somebody at the top who had this experience, who really knows China’s system, culture, society and who still has some friends over there, this will be very helpful, you know, to smooth the relationship,” Zhu says.

But he notes that Walz might not hesitate to take a firmer stance as the geopolitical competition intensifies.

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The Chinese government, however, remained notably silent after Tim Walz was selected as Harris’ running mate. When questioned at a daily press briefing the following day, a Foreign Ministry spokesperson simply remarked that it was a “domestic affair of the U.S.”

For Qiang Fang, a professor of history at the University of Minnesota Duluth, this shows that China wants to “wait and see” who will win the U.S. election in November.

“If Harris and Walz win the election, the Chinese government would not be relieved,” says Fang, “because Tim Walz knows China, he was in China before.”

“I don’t think that the Chinese government has the impression that Tim Walz will definitely implement a pro-China policy under the current political environment in the United States,” he says.

As NPR has learned, Foshan No. 1 Middle School, where Walz once taught, has instructed its teachers not to give independent interviews about “an American who previously worked as a foreign teacher at school,” without specifically mentioning Walz by name.

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Aowen Cao contributed reporting from Beijing.

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Video: Biden Delivers Keynote on First Night of D.N.C.

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Video: Biden Delivers Keynote on First Night of D.N.C.

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Biden Delivers Keynote on First Night of D.N.C.

In his speech, which lasted nearly an hour, the president touted his accomplishments, attacked Donald Trump and passed the baton to Kamala Harris.

“We love Joe.” “America, I love you. Let me ask you, are you ready to vote for freedom?” “Yeah!” “Are you ready to vote for democracy and for America?” “Yeah!” “Are you ready to elect Kamala Harris and Tim Walz –” “Yeah!” “president and vice president of the United States? Because of you, we’ve had one of the most extraordinary four years of progress ever, period. When, I say ‘we,’ I mean Kamala and me. Donald Trump calls America a failing nation. He says we’re losing. He’s the loser. He’s dead wrong. Donald Trump says he will refuse to accept the election result if he loses again. Think about that. He means it. Think about that. All of us carry a special obligation. Independents, Republicans, Democrats. We saved democracy in 2020 and now we must save it again in 2024. Folks, we just have to remember who we are. We’re the United States of America. And there’s nothing we cannot do when we do it together. God bless you all, and may God protect our troops.”

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North Korean soldier crosses DMZ into the South

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North Korean soldier crosses DMZ into the South

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A North Korean soldier crossed the inter-Korean border on Tuesday, South Korean authorities said, amid a summer of heightened tensions on the peninsula and as the US and South Korea conduct joint military exercises.

The South Korean armed forces said they had “secured custody” of the soldier and that he had been handed over to the relevant authorities to establish his intentions. South Korean media reports described him as a staff sergeant in the North Korean army.

The risky crossing, which occurred at the easternmost point of the heavily fortified demilitarised zone, marked the second possible North Korean defection to the South this month, after a civilian crossed a maritime border off the west coast in the first week of August.

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The crossings come as tensions and rhetoric have escalated on the Korean peninsula this summer. Pyongyang has sent waves of waste-carrying balloons over the border in apparent retaliation against a leafleting campaign by human rights campaigners in South Korea.

The balloons have repeatedly disrupted South Korea’s busiest airport and one landed inside the South Korean president’s compound. Seoul responded last month by using loudspeakers to blast propaganda messages and K-pop into the North.

Last week, South Korea’s conservative President Yoon Suk Yeol told an event marking Korea’s independence from Japanese rule that “the freedom we enjoy must be extended to the frozen kingdom of the North, where people are deprived of freedom and suffer from poverty and starvation”.

“Only when a unified, free and democratic nation rightfully owned by the people is established across the entire Korean peninsula will we finally have complete liberation,” Yoon added, in remarks widely interpreted as a threat to pursue a renewed policy of unification through absorption of the North.

On Sunday, North Korea hit back by describing the latest US-South Korea military exercises as a “prelude to nuclear war”. The regime also accused the US of threatening to trigger a “third world war” by supporting Ukraine’s president Volodymyr Zelenskyy.

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North Korean leader Kim Jong Un has pursued closer economic and military ties with Russia and has backed Russian President Vladimir Putin’s war in Ukraine, including supplying munitions, in moves that have alarmed the US and its western allies.

Analysts noted that tensions on the peninsula worsened earlier this year after Kim renounced his country’s long-standing commitment to eventual unification, describing South Korea as his country’s “principal enemy” and saying its citizens should no longer be regarded as “fellow countrymen”.

North Korea has also worked with China to reinforce the country’s northern border, across which the majority of North Koreans seeking to claim citizenship in the South cross.

In the first half of the year, just 105 North Korean escapees arrived in South Korea. The majority were women who had already spent years in China, many of them victims of human trafficking networks. That figure compares with an average of 1,000 North Koreans arriving in the South each year before the coronavirus pandemic.

According to Ri Il Gyu, a former North Korean diplomat stationed in Cuba who defected to the South last year, Kim’s crackdown on the border and his abandonment of the goal of unification was a response to the desire of many North Koreans to move to or to join the South.

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“North Koreans long for and desire unification more than South Koreans,” he told South Korea’s conservative Chosun Ilbo newspaper last month.

“Whether they are executives or ordinary citizens, when they worry about the future of their children, they think that there has to be a better life, and the only answer is unification.”

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