China has strongly rejected the European Commission’s recent decision to impose anti-subsidy duties on electric vehicles (EVs) produced in the Chinese mainland. Labeling the move as \"protectionist,\" China asserts that the new tariffs unfairly target its growing EV industry.
The tariffs, effective from Thursday, range from 7.8% for cars manufactured at Tesla’s Shanghai plant to as high as 35.3% for vehicles produced by Chinese brand SAIC. This imposition is set to last for five years, according to reports from China Central Television.
A spokesperson from the Chinese Commerce Ministry stated that China \"does not agree with or accept\" the EU’s decision and has consequently filed a lawsuit with the World Trade Organization (WTO) dispute settlement mechanism. Emphasizing China's commitment to protecting its enterprises, the spokesperson added that all necessary measures would be taken to safeguard their legitimate rights and interests.
The China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCME) criticized the European Commission, arguing that it failed to correct numerous erroneous conclusions in its final ruling. The CCCME further stated, \"The Commission's unfair, unreasonable, and subjective conclusions in this case constitute a serious violation of the rules of the WTO and the EU's anti-subsidy regulations.\"
Highlighting the broader impact, Hildegard Muller, president of Germany’s auto industry association VDA, noted that German and European manufacturers exporting from the Chinese mainland to the EU are burdened with higher duties compared to competitors from the US. She warned that these tariffs could escalate trade conflicts and lead to higher vehicle prices for EU consumers.
Responding to the tariffs, the China Chamber of Commerce to the EU expressed disappointment, asserting that the measures would not benefit the EU’s EV manufacturing sector. Instead of fostering innovation and employment, the tariffs are expected to hinder collaboration and progress. The chamber called for accelerated negotiations to eliminate the tariffs and promote cooperative growth.
In a move towards resolution, a spokesperson from the Chinese Commerce Ministry emphasized China’s preference for resolving trade disputes through dialogue and consultation. Technical teams from both sides are currently engaged in new rounds of talks aimed at reaching a mutually acceptable solution to prevent further trade frictions.
Despite the tensions, China’s EV sector continues to grow robustly. The China Association of Automobile Manufacturers (CAAM) reported that China exported 928,000 EVs in the first nine months of the year, marking a 12.5% increase from the previous year. Belgium, Brazil, and the UK emerged as the top importers of Chinese EVs during the first eight months, highlighting the global demand for China’s electric vehicles.
Reference(s):
China calls EU tariffs on Chinese EVs 'protectionist practice'
cgtn.com
