China denounces EU's higher tariffs on EVs as protectionist

(MENAFN) Beijing has expressed strong dissatisfaction following the EU Commission's announcement of increased tariffs on Chinese electric vehicles (EVs), labeling the decision as a "protectionist act." In a statement, China's Commerce Ministry criticized the move, claiming it would escalate trade frictions and undermine fair competition under the guise of maintaining it.

Starting July 4, the EU will impose additional custom duties of up to 38.1 percent on Chinese EVs. In response, the Chinese ministry accused the EU of ignoring facts, violating World Trade Organization rules, and dismissing China's repeated objections. The ministry also warned that the EU's decision would disrupt and distort the global automotive industry supply chain, including within Europe.

The ministry further criticized the European Commission for hypocrisy, stating that while the EU promotes green development, it simultaneously engages in protectionism by politicizing and weaponizing economic and trade issues. The ministry urged the EU to "immediately correct its wrong practices."

The EU Commission had initiated an investigation last year into Chinese imports, provisionally concluding that Chinese battery electric vehicles benefit from "unfair subsidization," leading to an uneven competitive landscape. However, the Chinese Commerce Ministry dismissed these findings, stating they lack a factual and legal basis.

Under the new measures, BYD Company will face a duty of 17.4 percent, Geely group 20 percent, and SAIC Motor 38.1 percent. Chinese producers not specifically sampled by the commission will incur a duty rate of 21 percent, while non-cooperative producers will face the maximum duty of 38.1 percent.

The China Chamber of Commerce to the EU also voiced its "shock, grave disappointment, and deep dissatisfaction" with the EU's decision.



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