China is ready to retaliate. Now they have the power and leverage to make an impact.
China’s Commerce Ministry has sharply criticized the European Union’s decision to impose higher tariffs on Chinese electric vehicles (EVs), calling the move unreasonable and excessive. The Ministry’s spokesman, He Yadong, expressed strong disapproval on Thursday, stating that the European Union demanded an unprecedented amount of detailed information from Chinese automakers. This information included specifics about manufacturing processes, development, technology, and product formulas, which He described as exceeding the norms of anti-subsidy investigations.
Despite the efforts of Chinese companies to comply and provide the requested information, He asserted that the European Commission unfairly accused them of not fully cooperating. Consequently, punitive high tax rates were imposed on the Chinese automakers, leaving them “shocked and disappointed.” The Ministry did not announce any immediate retaliatory measures but warned that China would defend its companies’ rights and interests.
“German hopes are high that Economy Minister Robert Habeck’s trip to China will help address tensions over the recently announced EU tariffs on electric vehicles EVs)” https://t.co/OITgyMHy4o
— Transatlantic Policy Center 🇺🇦 (@AU_EuropeCenter) June 20, 2024
In a related move, Beijing announced an anti-dumping investigation into European pork exports, a decision widely seen as a countermeasure to the EU’s increased tariffs on EVs. This investigation is expected to last a year and includes various pork products. While the Ministry did not explicitly link this investigation to the EV tariff dispute, the timing suggests a strategic response to the EU’s actions.
The European Union plans to implement provisional tariffs ranging from 17.4% to 38.1% on Chinese EVs for four months starting July 4. These tariffs will apply to vehicles exported by both Chinese and foreign brands operating in China, including Tesla. The EU’s decision is part of an escalating trade dispute over what it perceives as unfair subsidies provided by Beijing to its EV manufacturers, which Brussels argues are detrimental to European automakers.
Irish and EU pork exports to China in the firing line, as China responds to EU introduction of 38.5% tariff on electric vehicles.
https://t.co/MvLxG4GeUS— Irish Farmers Journal (@farmersjournal) June 20, 2024
He Yadong emphasized that the tariffs lack a factual and legal basis, reiterating China’s stance against the EU’s measures. However, he also indicated that Chinese authorities are open to discussions with their European counterparts to find a resolution to the ongoing issues.
The dispute highlights the growing tensions between China and the EU over trade practices and market competition, particularly in the rapidly expanding EV sector. Both sides are seeking to protect their domestic industries while navigating the complexities of international trade regulations. As this situation develops, the potential for further retaliatory measures remains, which could impact broader trade relations between China and the European Union.
China protests over EU move to hike tariffs on Chinese electric vehicles. https://t.co/Cepl578Evb pic.twitter.com/1TnXCfYpZZ
— Eugene (@eugene_mecke) June 20, 2024
Key Points:
i. China’s Commerce Ministry accused the European Union of making unreasonable demands in its investigation into Chinese electric vehicle (EV) imports before announcing increased tariffs.
ii. Ministry spokesman He Yadong claimed the EU demanded excessive information from Chinese automakers and unfairly accused them of non-cooperation.
iii. The EU plans to impose provisional tariffs of 17.4% to 38.1% on Chinese EVs for four months starting July 4, citing concerns over Beijing’s subsidies.
iv. China expressed shock and disappointment at the EU’s punitive tax rates and warned it would defend its companies’ rights and interests.
v. In a potential retaliation, China opened an anti-dumping investigation into European pork exports, expected to take one year.
Susan Guglielmo – Reprinted with permission of Whatfinger News
