China slams EU tariffs on electric vehicles as ‘protectionist’

CONSTANTINOPLE:

Expressing “strong dissatisfaction” after the EU Commission announced higher tariffs on Chinese electric vehicles (EVs), Beijing called the move “an act of protectionism”.

“This is a bare act of protectionism, creating and escalating trade frictions and ‘destroying fair competition’ in the name of ‘maintaining fair competition,'” China’s Ministry of Commerce said in a statement.

The Commission said it would impose additional customs duties of up to 38.1% on Chinese electric vehicles from July 4.

However, the ministry accused the EU of “ignoring the facts and rules of the World Trade Organization” as well as “ignoring” China’s repeated strong opposition.

It said the EU decision “will also disrupt and distort the global automotive supply chain, including the EU”.

“The European Commission holds aloft the banner of green growth in one hand and the stick of ‘protectionism’ in the other, politicizing and weaponizing economic and trade issues,” the ministry said, calling on the EU to “immediately correct its wrong practices.” . .”

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Brussels launched an investigation into imports from China last year, which provisionally concluded that Chinese battery electric vehicles are benefiting from an “unfair subsidy”, creating a competitive gap.

“The findings revealed in the EU decision lack factual and legal basis,” the Chinese Ministry of Commerce said.

However, the measures announced by the Commission under the first provisional ruling set the individual duties for BYD Company at 17.4%, Geely Group at 20% and SAIC Motor at 38.1%.

Other Chinese producers not sampled by the Commission will be subject to a duty of 21%, while all other producers that did not cooperate in the investigation will be subject to a residual duty of 38.1%.

The China Chamber of Commerce to the EU also expressed “shock, serious disappointment and deep displeasure” at the move.

The chamber expressed concern that the Commission’s move could “escalate trade frictions between China and the EU, adversely affecting economic, trade and business relations between the two economies”.