China’s Foreign Ministry asserted on Wednesday that the country would employ all available measures to staunchly protect its lawful rights and interests following a report in a newspaper claiming that the European Commission intends to levy tariffs of up to 25% on imported Chinese electric vehicles (EVs).
After an extensive eight-month investigation, the Commission, the governing body overseeing trade policy for the 27-nation European Union, is poised to notify automakers on Wednesday of its intent to provisionally impose additional duties of up to 25% on imported Chinese EVs starting next month.
Rising concerns over Chinese industrial overcapacity inundating the EU with competitively priced products, including EVs, are initiating a new phase in the West’s trade dispute with Beijing, which commenced with Washington’s imposition of import tariffs back in 2018. EU trade policy is increasingly embracing protective measures against the global repercussions of China’s production-centric, debt-fueled economic model.
Lin Jian, a spokesperson for the foreign ministry, denounced the anti-subsidy investigation as a clear instance of protectionism during a routine press briefing. He urged the EU to honor its commitment to promoting free trade and opposing protectionist tendencies, calling for collaborative efforts with China to uphold the overall framework of China-EU economic and trade cooperation. Jian emphasised China’s determination to firmly defend its legitimate rights and interests through necessary means.
The report of a 25% tariff was initially disclosed by the Financial Times, citing sources familiar with the matter. On Tuesday, the China Passenger Car Association acknowledged a hypothetical 20% tariff on Chinese EVs as “understandable,” recognising the significant role of the automotive sector as a major employer in Europe.