China issued a stark warning on Wednesday concerning the European Union’s planned tariff increases on Chinese electric vehicles (EVs), suggesting such EV tariffs would detrimentally impact Europe’s economic interests and escalate protectionism. The European Commission anticipates implementing additional duties potentially reaching 25%, adding to the current 10%, according to industry insiders.
Lin Jian, a spokesperson for the Chinese foreign ministry, expressed vehement opposition to these tariffs, stating they contradict the principles of a market economy and global trade norms. “This action compromises both China-EU economic and trade cooperation and the stability of the global automobile production and supply chain,” Lin declared.
The backdrop for this tariff hike is a broader landscape of rising trade disputes between Western countries and Beijing, fueled by allegations of China’s unfair competitive practices across several sectors, including renewable energy technologies such as wind turbines and solar panels.
Europe’s leading automotive sector, home to iconic brands like Mercedes and Ferrari, faces major challenges. The shift from combustion engines to electric vehicles—where China has developed a considerable advantage—poses a potential existential threat. Brussels initiated an investigation last year into China’s subsidies to its electric car manufacturers, aimed at addressing practices seen as undermining European manufacturers.
European Commission President Ursula von der Leyen hinted at “targeted” actions to level the playing field, following a trend set by the United States, which recently increased its tariffs on Chinese electric vehicles to a formidable 100%.
As the world’s principal car exporter, China views Europe as a vital market. The value of Chinese electric vehicle exports to Europe has soared, increasing from $1.6 billion to $11.5 billion, according to the Rhodium Group.
Lin concluded with an appeal to the EU to adhere to its free trade commitments and collaborate with China to maintain the benefits of their economic and trade relations. He warned that China is ready to take all necessary measures to robustly defend its legitimate rights and interests amidst these deepening trade tensions.
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