Beijing strongly opposes the European Union’s proposed import tariffs on Chinese electric vehicles.
China strongly disagrees with the EU’s imposition of taxes on Chinese electric vehicles.
The Ministry of Commerce in Beijing noted that “we strongly oppose this action and are highly concerned.” “We urge the European side to cooperate with China in a logical and practical way to avoid escalating trade disputes.”
The European Commission earlier announced sanctions on electric vehicles from China. These sanctions could amount to as much as 36.3% and will take effect at the end of October, initially for a period of five years.
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Major manufacturers such as BMW, VW and Tesla, which produce in China, will experience tariff reductions.
Trade War
The European Commission alleges that China offers illicit incentives to its producers and fears potential damage to European companies, including possible factory closures or job losses.
However, Commission officials stressed that negotiations with Beijing remain feasible to circumvent the duties. Instead, China initiated a dispute with the World Trade Organization (WTO) in early August.
Manufacturers now have a provisional ten-day deadline to react. After that, the European Commission will present its proposal to the member states for a final vote.
The European Commission’s allegations of illicit Chinese incentives have led to critical scrutiny and possible consequences for Chinese vehicle manufacturers in the EU market.
Prior to the recent measures, China announced a cooperation agreement with the European Union to avoid the tariffs announced by Brussels on Chinese electric vehicles.
Chinese Commerce Minister Wang Wentao and EU Trade Commissioner Valdis Dombrovskis held a video call conversation after which it was reported that Chinese subsidies that would justify the announced tariffs of up to 38.1% will be examined.
