China’s Ministry of Commerce has expressed strong dissatisfaction and concern over the European Union’s preliminary decision to impose anti-subsidy duties on Chinese electric vehicles (EVs). The EU Commission announced on Wednesday its proposal to levy temporary duties of up to 38.1 percent on EVs imported from China, targeting major manufacturers including BYD, Geely, and SAIC.
According to the EU Commission, BYD, Geely, and SAIC could face tariffs of 17.4 percent, 20 percent, and 38.1 percent respectively. Other companies cooperating with the investigation may face a 21 percent tariff, while non-cooperating firms could be subjected to the maximum rate of 38.1 percent. These measures are expected to come into effect by July.
In a statement released on Wednesday, a spokesperson for China’s Ministry of Commerce criticized the EU’s decision, stating that it disregards facts and World Trade Organization (WTO) rules. The spokesperson noted that despite China’s repeated objections and calls from several EU member states and industry sectors, the EU proceeded with unilateral measures, leading to profound disappointment and firm opposition from the Chinese industry.
The Ministry argued that the EU’s ruling lacks a factual and legal basis, accusing the EU Commission of ignoring the competitive advantages of Chinese EVs that stem from open competition and technological innovation. The EU is also accused of fabricating and exaggerating subsidy issues, misusing the “available facts” rule, and imposing excessively high subsidy rates.
China’s Ministry of Commerce labeled the EU’s actions as protectionist behavior and unfair trade practices. The Ministry stated that these measures not only undermine the legitimate rights and interests of China’s EV industry but also disrupt the global automotive industry chain and supply chain, including within the EU.
The spokesperson further emphasized that the EU’s actions run counter to the spirit of cooperation agreed upon by leaders of China and the EU. The measures are said to politicize and weaponize trade issues, negatively impacting bilateral trade relations and consumer interests within the EU. Moreover, the Ministry expressed concern that such actions would hinder the EU’s green transformation efforts and global initiatives to combat climate change.
China urges the EU to correct its approach immediately and to resolve trade frictions through dialogue and consultation, following the consensus recently reached by leaders of China, France, and the EU. The Ministry stated that China will closely monitor the EU’s next steps and is prepared to take all necessary measures to firmly defend the legitimate rights and interests of Chinese enterprises.
Reference(s):
Chinese Ministry of Commerce condemns EU's anti-subsidy ruling on EVs
cgtn.com
