China Responds To EU's Additional Tariffs On EV Imports

The European Commission has decided to charge additional duties on electric vehicles imported from China from July to challenge increasing dominance of Chinese car manufacturers in the EU market.

Responding to the announcement, the Chinese ministry of commerce said it would use “all necessary measures” to defend the rights of Chinese car makers. It would even present the case in the World Trade Organization to put a control on the increased geopolitical tensions.

The China Chamber of Commerce for Import and Export of Machinery and Electronic Products also announced that it will use “various means” to protect the manufacturers from EU’s latest policies.

“Such a move not only violates the legitimate rights and interests of China’s EV industry but also wreaks havoc on the global automotive supply chain, including within the EU,” according to state news agency Xinhua.

“The EU’s politicization and weaponization of economic and trade issues will sabotage the atmosphere of economic and trade cooperation between China and the EU, harm the interests of EU consumers, and undermine its green transformation and global cooperation on climate change,” the agency said in a commentary.

Ding Yifan, a Europe specialist from the Chinese State Council’s Development Research Centre, said to South China Morning Post that China had prepared retaliation against the EU tariffs in “various aspects”, including plans to hit EU’s automobile, agriculture and luxury sectors.

“Of course there are plans and preparations. How much have interests been harmed by your tariffs, then how much will retaliate against it,” Yifan added.

Earlier, China had exercised control over export of raw materials for battery and chip production, in response to the U.S. and its allies’ restriction on AI-related chips and semiconductor manufacturing equipment export to China.

Speaking about the tariffs, carmaker SAIC stated, “We are deeply disappointed by the European Commission’s decision. The relevant measures not only violate the principles of market economy and international trade rules, but may even have a greater negative impact on the stability of the global automotive industry chain and China-EU economic and trade cooperation.”