Brussels (The Brussels Morning Newspaper)- The Chinese government lashed out at the European Union over tariffs on electric vehicle imports, after the European Commission lowered duties on several significant electric automakers, including Tesla
A Ministry of Commerce representative told journalists that Beijing continues to consider that the EU’s probe into China’s subsidies for its electric vehicle industry has come to “pre-set conclusions,” counting that the bloc is encouraging unfair competition. “China will take all necessary steps to resolutely defend the legitimate rights and interests of Chinese companies,” the Ministry of Commerce spokesperson stated.
How did the EU adjust import duties on Chinese electric automakers?
A day earlier, the European Commission, the EU’s executive body, reduced import duties on several electric vehicle manufactories importing cars into the EU from China. It also imposed tariffs on Elon Musk’s electric vehicle maker Tesla at 9%, below a previously expected 20.8% rate. These tariffs come on the canopy of existing EU duties of 10% on battery electric vehicles imported into the territory from China.
The European Commission also reduced tariffs on several Chinese electric car architects, including BYD, SAIC, and Geely. The tariffs, first revealed by the EU in June, come in response to problems from the bloc that generous subsidies for China’s electric vehicle industry are misinterpreting competition in Europe.
What is China’s response to the EU’s probe into its EV subsidies?
In response to the move, the Chinese Commerce Ministry stated that both the government and China’s EV industry supplied “tens of thousands of pages of legal documents and proof materials through various means such as offering questionnaires, written comments, and hearing statements.”
These documents, the Ministry stated, “have comprehensively and deeply upheld the unreasonable and non-compliant practices of the EU,” and stressed how EU tariffs “will disrupt the stability of the global automotive industry chain supply chain including the EU.”
The EU’s final declaration, the Ministry stated, “did not fully immerse China’s opinions” and was “based on the ‘facts’ unilaterally specified by the EU, rather than the facts identified by both parties. China firmly objects and is highly concerned about this,” the Ministry stated. It added that it hopes to settle any trade disputes with the EU and to take practical steps to avoid an escalation of trade frictions.
