Russia betrays China after secretly implementing tariffs on its ally

Moscow has secretly strained its relationship with Beijing after imposing tariffs on Asian car exports to Russia.
Before the war in Ukraine, Russia was among the top 10 automotive markets, but Western companies pulled out of the country following the invasion. Despite this sudden exodus, China flooded Russia with its car brands, including Geely and Chery.
Thanks to this mutually beneficial trade, the partnership generated over 244 billion dollars last year, according to figures provided by China.
The influx of Chinese automobiles has raised concerns in both Russia and the European Union, especially with the growing number of electric vehicles. In response, Moscow has increased its "scrap tax" from 70% to 85%.
This move allows Russia to protect its domestic industry while encouraging foreign manufacturers to relocate production within the country.
"From January 2025, the recycling fee [comprised] more than a quarter of the price tag. This means that for most OEMs [original equipment manufacturers], Russia's recycling fees are costlier than the EU's countervailing duties on Chinese EVs," said Gregor Sebastian, senior analyst at Rhodium Group’s China Corporate Advisory team.
Chinese authorities must now assess the impact of this tax on their economy.
(QG - Newsweek / Picture: © Pixabay)
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