The European Union’s decision to impose substantial tariffs on Chinese-built electric vehicles (EVs) has sparked a wave of disapproval from China, the United Kingdom, and Germany. The move, which aims to address alleged unfair subsidies, has heightened tensions and raised concerns about potential trade conflicts.
Effective Wednesday, the European Commission has approved additional tariffs ranging from 7.8 percent to 35.3 percent on Chinese EV imports, on top of the standard 10 percent car import duty. Companies affected include global brands like Tesla and China’s SAIC. The tariffs, reaching up to 45.3 percent in total, mark the end of a high-profile trade investigation launched over a year ago.
The Commission asserts that the tariffs are necessary to counter what it describes as unfair subsidies provided to Chinese EV manufacturers. These subsidies allegedly include preferential financing, grants, and access to land, batteries, and raw materials at below-market prices.
China’s Response
China’s Ministry of Commerce has strongly opposed the EU’s decision, describing it as irrational and a form of protectionism under the guise of ‘fair competition.’ A spokesperson stated that China does not approve or accept the extra tariffs on EVs made in China and has already appealed to the World Trade Organization’s dispute settlement mechanism. The ministry emphasized that China will continue to take all necessary measures to safeguard the legitimate rights and interests of Chinese enterprises.
Opposition from the UK and Germany
Jonathan Reynolds, the UK’s Secretary of State for Business and Trade, expressed openness to reviving key trade dialogues with China, noting that trade is an area where cooperation is possible. Reynolds confirmed that the UK has no plans to follow the EU’s decision to impose import duties on Chinese battery electric vehicles.
In Germany, the main automotive industry group warned that the EU’s decision could provoke a ‘far-reaching trade conflict.’ Hildegard Müller, president of the German Association of the Automotive Industry, called the tariffs a step backward for free global trade, potentially impacting prosperity, job preservation, and growth in Europe. BMW’s CEO, Oliver Zipse, added that the move could harm globally active companies, limit the supply of electric cars to European customers, and slow down decarbonization in the transport sector.
Ongoing Negotiations
Despite the tensions, China’s Ministry of Commerce noted that the EU remains willing to continue discussions on price commitments for Chinese-made EVs. Technical teams from both sides are engaging in a new phase of consultations. China expressed hope that the EU will work constructively, adhering to principles of pragmatism and balance, to reach a mutually acceptable solution and avoid escalating trade frictions.
The unfolding situation highlights the complex dynamics of international trade in the rapidly evolving electric vehicle market. As key players advocate for dialogue and cooperation, the outcome of these negotiations could significantly impact global economic growth and efforts to address climate change.
Reference(s):
China, UK, Germany express disapproval over EU tariffs on Chinese EVs
cgtn.com
