"Adversely Affecting Their Own Interests": China Warns EU over Protective Tariffs on Electric Cars
Brussels kicked off an antitrust probe towards China at the tail end of 2023, accusing it of doling out illegal subsidies for electric vehicles. If the inquiry affirms that China breached international trade law, Brussels may slap tariffs on Chinese automobiles. The ruling might be declared following the completion of the European election, potentially happening this coming Wednesday. Up to 25% taxes have been anticipated. The current tariff rate stands at 10%.
A representative for China's Foreign Ministry delivered a statement proclaiming that Brussels' actions violate "the principles of market economy and international trade laws" and "undermine economic and trade partnership between China and the EU as well as global automobile production and supply chains' stability." They also urged the EU to stick to free-trade ideals and reject protectionism.
In response to the EU's potential tariff hike, Federal Chancellor Olaf Scholz (SPD) expressed disapproval. German companies heavily reliant on China fear repercussions as the escalating tension could affect their sales Europe-bound Chinese vehicles and possibly prompt China to retaliate.
Volker Treier, the foreign trade chief at the German Industry and Trade Association (DIHK), shared his concern about the EU's planned electric car tariffs on Wednesday. "These tariffs announced by the EU Commission on electric cars from China will not be without consequences for Germany's export-oriented economy," he said. "Trade conflicts should be minimized further." Nevertheless, a study by the Institute of the German Economy (IW) Cologne revealed that most German companies in the industrial sector support the idea of levying taxes against China due to mounting competition from the nation.
Read also:
- The EU Commission's move to investigate China for giving out illegal subsidies to electric vehicles could lead to protective tariffs being imposed on Chinese vehicles, affecting the sale of electric cars in Europe.
- The potential tariffs on Chinese electric cars by the EU could escalate tensions between the two economies, leading to repercussions for German companies heavily reliant on China.
- The EU's planned tariffs on Chinese electric cars have sparked concern among industry leaders, with Volker Treier of the German Industry and Trade Association (DIHK) warning of potential consequences for Germany's export-oriented economy.
- Despite the concerns raised by German industry leaders, a study by the Institute of the German Economy (IW) Cologne has revealed that many German companies in the industrial sector support the idea of levying taxes against China due to intense competition from the nation.
- China has warned the EU over its potential tariffs on electric cars, stating that these actions violate international trade law and principles of market economy, and could harm economic and trade partnership between the two entities.
- The EU Commission's antitrust probe towards China and the potential tariffs on Chinese automobiles are likely to be discussed during the upcoming European elections, which could have significant implications for the automobile industry in both Europe and China.
- If the EU Commission's inquiry into China's subsidies for electric vehicles confirms that China breached international trade law, Brussels may impose import duties as high as 25% on Chinese cars, which could significantly impact the cost of owning an electric car in Europe.
