The European Union has increased import tariffs on Chinese electric vehicles to counter Beijing’s huge subsidies to their manufacturers.
China called Thursday “flagrant act of protectionism” the decision of the European Union to increase tariffs on their electric vehicles.
The European Comissionthe EU’s executive arm, said it would impose provisional tariffs of up to 38% starting next month, up from the current level of 10%, if the talks with China They do not lead to an effective solution.
The Chinese Ministry of Commerce denounced the measure this Thursday
“It will not only harm the legitimate rights and interests of the Chinese electric vehicle industry and will disturb the mutually beneficial cooperation between China and Europe in new energy vehicles, but will also distort the global automobile industry and supply chains, including those in the EU,” the Minister of Commerce chino.
“It is a blatant act of protectionism,” he added. The European Commission declared that a investigation opened last year into Chinese subsidies to electric vehicles discovered that the value chain of such production “benefits from unfair aidwhich is causing a threat to EU producers.”
Additional fees would vary by company
The company BYD would face an additional rate of 17.4%. The manufacturer Geely, owner of the Swedish Volvo, would have to pay 20% more. In the case of SAICit would be an additional 38.1%.
The Chinese Government assures that they reserve the right to present the case to the World Trade Organization and will take “all necessary measures to safeguard the rights and legitimate interests of Chinese companies“.
The United States imposed tariffs last month
The president of United States, Joe Bidenimposed last month major new tariffs on electric vehiclesadvanced batteries, solar cells, steel, aluminum and Chinese medical equipment.
Biden stated that the Chinese government subsidies They guarantee that the country’s companies do not have to make profits, which gives them an unfair advantage in world trade.
An increasingly intense trade war
Analysts warn that it could explode an increasingly intense trade warwhich would raise prices for consumers and harm exporters and their workers on both sides.
Both are important markets for each other: China, a rising economy of more than a billion people, and Europe, with its relatively well-off population of more than 400 million.
“It’s like seeing a traffic accident in slow motion“, declared at the beginning of the year Jens Eskelund, president of the European Chamber of Commerce in China. “The accident has not occurred yet and it is still possible to find a way out. It is becoming urgent.”
China issued a warning in January, initiating an anti-dumping investigation into the formerEuropean brandy ports, including French cognac. France was one of the main supporters of lto investigation of the European Union which led to Wednesday’s announcement of tariffs on electric vehicles.
The EU also investigates the subsidies granted to Chinese wind and solar energy companies and if China unfairly restricts the access to the health products marketa long-standing complaint of European manufacturers.
