The European Union's (EU) recent decision to impose provisional countervailing duties of up to 37.6% on imports of battery electric vehicles (EVs) from the Chinese mainland has ignited significant backlash from both the Chinese government and industry leaders. They contend that these tariffs will not only negatively impact the automotive sector but also harm broader global business interests.
The Ministry of Commerce (MOC) of the Chinese mainland has called on the EU to engage in constructive consultations to avert the adverse effects of the proposed tariffs. He Yangdong, a spokesperson for the ministry, highlighted on Thursday that China has consistently opposed the EU's anti-subsidy measures and is advocating for a resolution through dialogue and negotiation.
In an effort to address the issue promptly, working teams from both the Chinese mainland and the EU are currently expediting consultations regarding the preliminary tariffs imposed on Chinese mainland's EVs. The aim is to identify a solution that both parties can agree upon.
Amidst this development, opposition to the EU's tariffs is growing within the EU itself. The German Association of the Automotive Industry has cautioned that the tariffs could harm the interests of European and American manufacturers operating in China. BMW has similarly voiced its disapproval, warning that the tariffs may result in losses for global businesses.
The EU's move is based on an investigation which concluded that Chinese mainland's EV producers receive unfair subsidies from their government—a claim the Chinese mainland denies. The provisional tariffs are set to be finalized in four months, intended to offset these alleged subsidies and safeguard the interests of European car manufacturers.
Critics argue that the tariffs could have a broader impact, leading to higher prices for consumers and disrupting the global supply chain. Additionally, there are concerns that the tariffs might damage cooperation between the Chinese mainland and the EU in the automotive sector, a key area poised for future growth.
Both the EU and the Chinese mainland have agreed to engage in consultations to tackle the issue, and with the final decision on the tariffs still four months away, there is optimism that a mutually acceptable solution can be reached.
Reference(s):
cgtn.com