China Labels EU Tariffs on Chinese Electric Vehicles as 'Protectionist Practice'

China has denounced the European Commission's decision from Tuesday to impose anti-subsidy duties on electric vehicles (EVs) manufactured in China, labeling the action as "protectionist."

China Labels EU Tariffs on Chinese Electric Vehicles as 'Protectionist Practice'
China has criticized the European Commission's decision to implement anti-subsidy duties on electric vehicles manufactured in China, labeling the action as "protectionist."

According to China Central Television, these duties, which will come into effect on Thursday and remain in place for five years, vary from 7.8 percent for cars produced at Tesla's Shanghai facility to as much as 35.3 percent for Chinese brand SAIC.

A spokesperson from the Chinese Commerce Ministry stated on Wednesday that China "does not agree with or accept" the EU's actions and has initiated a lawsuit through the World Trade Organization’s dispute settlement mechanism.

The spokesperson emphasized that the country will continue to employ all necessary measures to protect the legitimate rights and interests of Chinese businesses.

In a statement released on Wednesday, the China Chamber of Commerce for Import and Export of Machinery and Electronic Products criticized the European Commission for failing to correct several inaccuracies 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.

Hildegard Muller, president of Germany's auto industry association VDA, pointed out that German and European manufacturers exporting from China to the EU face higher duties compared to their competitors from China and the US.

"The intended tariffs not only increase the risk of a mutual trade conflict, but would also make vehicles significantly more expensive for consumers," Muller noted in a statement.

Additionally, the China Chamber of Commerce to the EU expressed disappointment with the EU's decision, asserting that the tariffs would not be beneficial for the EU's EV manufacturing sector. The chamber warned that instead of fostering innovation and job creation, the tariffs would impede collaboration and progress, urging both parties to expedite negotiations to eliminate the duties and enhance cooperation.

Moreover, the spokesperson from the Chinese Commerce Ministry reiterated that China promotes the resolution of trade disputes through dialogue and consultation. Currently, technical teams from both sides are engaged in a new round of discussions aimed at reaching a mutually acceptable solution quickly to avert further trade tensions.

Data from the China Association of Automobile Manufacturers revealed that China exported 928,000 electric vehicles in the first nine months of this year, marking a 12.5 percent increase compared to the same period last year. According to CAAM, Belgium, Brazil, and the UK were the leading importers of Chinese EVs in the first eight months.

Ian Smith for TROIB News