China warned Wednesday that expected additional EU tariffs on imports of Chinese electric vehicles would “harm Europe’s own interests” and condemned the bloc’s “protectionism”.
The EU Commission is set to impose Wednesday fresh duties on EVs imported from China, industry sources told AFP.
“It goes against the principles of market economy and international trade rules, undermines China-EU economic and trade cooperation as well as the stability of the global automobile production and supply chain,” Chinese foreign ministry spokesman Lin Jian said.
The sources said the expectation was that the tariffs will be “up to 25%”, on top of the existing 10% duty.
“We urge the EU side to honour its commitment of supporting free trade and opposing protectionism and work with China to uphold the overall interests of China-EU economic and trade cooperation,” Lin said.
“China will take all necessary measures to firmly safeguard its legitimate rights and interests,” he warned.
Europe’s automotive sector is the jewel in its industrial crown — behind iconic brands from Mercedes to Ferrari — but it faces an existential threat from the looming end of combustion engines and China’s head start in the switch to electric.
Brussels launched a probe last year into Chinese electric car subsidies, with officials saying they wanted to put the brakes on what they claimed were unfair practices undercutting Europe’s car manufacturers.
The EV standoff comes in a context of rising trade tensions between Beijing and Western countries, which are investing billions in the energy transition and accuse the Asian giant of unfair competition on everything from wind turbines to solar panels.
European Commission President Ursula von der Leyen has said the EU was planning “targeted” action, after the United States quadrupled its own duties on Chinese electric cars to 100%.
China is the world’s biggest car exporter and Europe is a critical market.
Their value rose over the same period from USD 1.6 billion to USD 11.5 billion, according to Rhodium Group.
