China investigates EU in trade dispute
European Anti-Dumping Tariffs on E-Cars are making themselves noticeable in Chinese exports. Beijing is therefore examining countermeasures, but it will take some time.
In the trade dispute with Europe, China is now taking its own investigative measures against the European Union. The Ministry of Commerce in Beijing announced an investigation with a focus on "trade and investment barriers" that result from the EU's actions. Brussels had previously initiated a series of investigations into state subsidies for Chinese state sectors - Beijing threatened countermeasures multiple times.
The Chinese Ministry, according to its own statements, is following up on a complaint from the national Chamber of Commerce of the country regarding the import and export of machinery and electrical appliances, including locomotives and equipment for photovoltaic and wind power plants. The investigation is reportedly scheduled until January 2025, but could be extended by an additional three months.
Brussels recently raised tariffs on electric cars produced in China, which initially apply temporarily and could take effect in the fall. There was sharp criticism from Beijing. The EU Commission is demanding provisional additional tariffs of up to 37.6% for Chinese electric cars. It justified its decision with unfair competitive advantages through high subsidies for Chinese electric cars. This threatens European car manufacturers and their transition to electromobility. However, European manufacturers like BMW or Renault are also affected by the additional tariffs.
Even before the introduction of European Anti-Dumping Tariffs, Chinese electric car exports have significantly declined. The growth was pushed back by around 20 to 30 percentage points due to the tariff discussion, said Cui Dongshu, Secretary-General of the China Passenger Car Association (CPCA). "Electric car and plug-in hybrid exports are currently under pressure," he said. In recent months, exports have only increased by just over 10%, compared to 30-40% in the past.
Currently, 21% of cars exported from China are electric cars or hybrid vehicles that additionally have an internal combustion engine.
The EU's implementation of anti-dumping tariffs on Chinese electric cars has led to a significant decline in exports, according to the CPCA, causing a 20-30% decrease in growth. In response to the EU's tariffs on Chinese exports and its investigation into state subsidies, China's Ministry of Commerce has initiated an investigation focusing on "trade and investment barriers" originating from the EU's actions, potentially affecting the EU-China trade relations in the field of electric vehicle manufacturing.
