Beijing vigorously denounces forthcoming EU levies on electric vehicles.
Brussels and Beijing have been locked in a tussle over tariffs on Chinese electric vehicles for quite some time now. Not too long ago, the EU revealed some modifications - the idea of retroactive payments has been scrapped. Nevertheless, China remains unequivocally opposed to these tariffs. "China strongly condemns this move and is deeply troubled by it," the Commerce Ministry in Beijing stated. They expressed their hope that the EU would engage in sensible and practical dialogue with China to prevent any escalation in trade disputes.
The EU's anti-subsidy investigation allegedly goes against the provisions of the World Trade Organization and represents an unfair advantage disguised as fair competition, the Chinese Commerce Ministry added. The EU has not given appropriate consideration to China's views in its final decision and persists in its questionable tactics, the Ministry complained.
During the investigation, Beijing and the automotive sector are reported to have submitted legal documents and evidence to challenge the EU's unreasonable practices. According to the Chinese Commerce Ministry, both sides have had more than ten discussions on this matter since June. The EU Commission's controversial strategy threatens to disrupt the stability of the global supply chain in this industry and inflict harm on European consumers, the Chinese authority cautioned.
EU member states must cast their votes on tariffs
The EU initially declared that it would not impose initial additional tariffs on Chinese electric vehicles. Initially, there were plans to levy substantial retroactive compensation tariffs due to the fact that Chinese electric vehicles, along with others, enjoyed distorting subsidies. The tariff rates set by the authority have also been slightly altered. In most instances, there has been a slight decrease and the tariffs now stand between 36.3% and up to 36.3%, becoming effective by the end of October for an initial period of five years. For major automakers such as BMW, VW, and Tesla that manufacture in China, lower surcharges apply.
The EU Commission alleges that China provides illegal financial aid to its manufacturers and fears adverse effects on European producers like plant closures or job losses. However, the requisite conditions for the collection of retroactive tariffs no longer exist, according to the Commission. Whether the punitive tariffs will actually materialize will be revealed by the end of October. This decision must be ratified by the 27 EU member states, the Commission mentioned.
Negotiations with Beijing remain a possibility to avert the tariffs, commission officials underlined. Up until now, these discussions have not produced any positive results. Instead, China took the dispute to the World Trade Organization (WTO) at the beginning of August. The manufacturers now have a ten-day window to file their comments. Following that, the EU Commission will submit its proposal to the member states for a final decision.
The EU's decision to impose tariffs on Chinese electric vehicles has sparked strong opposition from China, with the Chinese Commerce Ministry voiceing their concerns about the EU's alleged unfair practices and disregard for China's views. The tussle over tariffs between the EU and China is a matter that requires the approval of all 27 EU member states before any actions can be implemented.
Despite the ongoing negotiations between the EU and China to avert the tariffs, the EU Commission's controversial strategy, if implemented, could potentially disrupt the global supply chain in the electric vehicle industry and negatively impact European consumers.
