China Condemns EU’s New Tariffs on Electric Vehicles

Expressing “strong dissatisfaction” after the EU Commission announced higher tariffs on Chinese electric vehicles (EV), Beijing labeled the move as a “protectionist act.”

“This is a naked protectionist act, creating and escalating trade frictions, and ‘destroying fair competition’ in the name of ‘maintaining fair competition’,” stated China’s Commerce Ministry.

The EU Commission revealed plans to impose additional customs duties of up to 38.1% on Chinese electric vehicles starting July 4. The Chinese Commerce Ministry accused the EU of “disregarding the facts and World Trade Organization rules” and “ignoring” China’s repeated strong opposition. The ministry claimed that the EU decision would “disrupt and distort the global automotive industry supply chain, including the EU.”

“The European Commission is holding high the banner of green development in one hand and wielding the stick of ‘protectionism’ in the other, politicizing and weaponizing economic and trade issues,” the ministry said, urging the EU to “immediately correct its wrong practices.”

Last year, Brussels initiated a probe into Chinese imports, concluding that Chinese battery electric vehicles benefit from “unfair subsidization,” which created a competition gap.

“The findings disclosed in the EU ruling lack factual and legal basis,” responded the Chinese Commerce Ministry.

The commission’s provisional decision sets individual duties for BYD Company at 17.4%, Geely group at 20%, and SAIC Motor at 38.1%. Other Chinese producers not sampled by the commission will face a duty rate of 21%, while those that did not cooperate in the investigation will be subject to a residual duty of 38.1%.

The China Chamber of Commerce to the EU also expressed “shock, grave disappointment, and deep dissatisfaction” with the move. The chamber voiced concerns that the commission’s decision might “escalate trade friction between China and the EU, negatively impacting economic, trade, and business relations between the two economies.”–News Desk