The Chinese mainland has firmly rejected the European Commission’s decision to impose anti-subsidy duties on China-made electric vehicles (EVs), labeling the move as ‘protectionist.’
The European Commission announced on Tuesday that anti-subsidy duties ranging from 7.8 percent to 35.3 percent will be applied to EVs imported from the Chinese mainland. These duties will take effect on Thursday and are set to last for five years, according to reports from China Central Television. The tariffs impact a range of manufacturers, from international brands like Tesla’s Shanghai plant, which faces a 7.8 percent duty, to domestic brands like SAIC, which faces a duty of up to 35.3 percent.
On Wednesday, a spokesperson for the Chinese Commerce Ministry expressed strong opposition to the EU’s decision. “China does not agree with or accept this move,” the spokesperson stated, adding that China has filed a lawsuit with the World Trade Organization (WTO) dispute settlement mechanism. The spokesperson emphasized that China will continue to take all necessary measures to firmly safeguard the legitimate rights and interests of Chinese enterprises.
The China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCME) echoed this sentiment in a statement released on Wednesday. The CCCME criticized the European Commission for failing to rectify what it described as numerous erroneous conclusions in its final ruling. “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,” the CCCME stated.
European Industry Voices Concerns
European industry leaders have also voiced concerns over the new tariffs. Hildegard Müller, President of Germany’s auto industry association VDA, remarked that German and European manufacturers exporting from the Chinese mainland to the EU are now burdened with higher duties than some competitors from the Chinese mainland and the United States. “The intended tariffs not only increase the risk of a mutual trade conflict but would also make vehicles significantly more expensive for consumers,” Müller said in a statement.
The China Chamber of Commerce to the EU expressed disappointment with the decision, stating that the tariffs will not benefit the EU’s EV manufacturing sector. “Instead of driving innovation and creating employment within the industry, they will hinder collaboration and progress,” the chamber said. It urged both sides to accelerate negotiations and eliminate the tariffs to promote cooperation and innovation.
Call for Dialogue and Consultation
The Chinese Commerce Ministry spokesperson emphasized that China has always advocated resolving trade disputes through dialogue and consultation. “Currently, technical teams from both sides are conducting a new round of consultations with the goal of reaching a mutually acceptable solution as soon as possible to avoid the escalation of trade frictions,” the spokesperson noted.
Surge in EV Exports
Despite the rising trade tensions, the Chinese mainland’s EV exports have seen significant growth. According to data from the China Association of Automobile Manufacturers (CAAM), the mainland exported 928,000 EVs in the first nine months of the year, marking a 12.5 percent increase compared to the same period last year. In the first eight months, Belgium, Brazil, and the United Kingdom were the top importers of EVs from the Chinese mainland, the CAAM data indicated.
Reference(s):
China calls EU tariffs on Chinese EVs 'protectionist practice'
cgtn.com
