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EU-China EV tariffs 'only create lose-lose situation'

By Li Jiaying | chinadaily.com.cn | Updated: 2024-08-21 00:13
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China will take all necessary measures to defend the legitimate rights and interests of Chinese companies, said the Ministry of Commerce, right after the EU's latest tarriff desicion late on Tuesday.

The European Commission, the European Union's executive arm, said on Tuesday that it plans to impose import tariffs of up to 36.3 percent on Chinese EVs for potentially five years.

This decision is based on facts unilaterally determined by the EU, rather than mutually recognized facts. China firmly opposes it and is deeply concerned about the move, a Chinese commerce ministry spokesperson said in an online statement late on Tuesday.

Since the end of June, China and the EU have conducted more than ten rounds of technical consultations on this issue, based on facts and rules, according to the ministry.

The spokesperson said that China hopes the EU will genuinely cooperate with the Chinese side in a rational and pragmatic manner, working together to seek effective solutions and taking concrete steps to prevent an escalation of trade tensions.

The European Union's latest decision to impose modified tariffs on imports of electric vehicles from China brings nothing but "deep disappointment" and will lead to a lose-lose situation for both sides, said a leading industry analyst on Tuesday.

"The EU has generally upheld the original proposed import duties for Chinese automakers, despite all the efforts made by the Chinese government, industry associations and enterprises to communicate and coordinate since early July, which is a disadvantageous option for both China and the EU," said Sun Xiaohong, secretary-general of the automotive branch of the China Chamber of Commerce for Import and Export of Machinery and Electronic Products, in an exclusive interview with China Daily.

Sun's comments came as the EU disclosed on Tuesday its draft decision to slightly reduce planned import duties on Chinese electric vehicle firms including BYD (from the original 17.4 percent to 17 percent), Geely (from 19.9 percent to 19.3 percent) and SAIC (from 37.6 percent to 36.3 percent), while new reduced rate for Tesla stands at 9 percent, lower than the 20.8 percent it had signposted in July.

The fact that Tesla gets to be exempt from the same tariff level as its Chinese counterparts is a glaring practice of double standards, Sun stressed.

"The EU has identified 18 ways in which China allegedly subsidizes electric vehicles, which is ridiculous," he said, adding that China hopes the WTO can finally come up with a fair result on the issue, after China filed an appeal with the global body earlier this month and challenged the imposition of provisional additional tariffs on imports of Chinese EVs.

Chinese EV companies are also closely monitoring the progress and outcomes of the EU's anti-subsidy investigation, in order to assess the risks of investing in the region and make investment decisions accordingly, said the China Chamber of Commerce for Import and Export of Machinery and Electronic Products in its latest statement on Tuesday.

lijiaying@chinadaily.com.cn

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