EU plans to push ahead with China EV tariffs bad for relations and green ambitions – Xinhua By Reuters
Beijing – The European Commission’s decision to go ahead with tariffs on electric vehicles made in China threatens to destroy decades of cooperation between China and the EU, and jeopardizes climate change goals, Xinhua news agency said on Saturday.
On Friday, the EU said it would press ahead with steep tariffs on EVs made in China, even after the bloc’s biggest economy, Germany, rejected them. The dispute is its biggest trade row with Beijing in a decade.
State-run Xinhua said the move revealed “deep security intent”.
“Instead of promoting cooperation, these tariffs risk creating a trade conflict that could damage not only China’s relations with the EU but also Europe’s desire to change the environment,” the statement said.
“The way forward is clear: Defense spending must be stopped in order for negotiations to continue.”
Imports of Chinese-made EVs to Europe have increased in recent years, raising concerns among some domestic EV manufacturers that they may lose out heavily on the wave of cheap Chinese electric vehicles.
Proposed duties on EVs made in China of up to 45% will cost automakers billions of dollars more to bring vehicles to the bloc and is expected to be implemented from next month for five years.
The Commission, which oversees the agency’s trade policy, said the tariffs would counter what it deemed inappropriate Chinese subsidies after a year-long anti-subsidy investigation. It said on Friday, however, that it would continue talks with Beijing.
A possible compromise would be to set minimum selling prices.
China’s Ministry of Commerce expressed strong opposition to the planned tariffs, calling them “unfair, inconsistent and unreasonable.” It has presented a challenge to them in the World Trade Organization.
In what were seen as retaliatory measures, Beijing this year launched an investigation into imports of EU brandy, milk and pork products.
US imposes 100% tariff on imported Chinese EVs.
