BEIJING, Oct. 30 - The European Union's (EU) decision to impose five-year definitive countervailing duties on Chinese-made electric cars has sparked strong opposition, with China calling the move "unfair, unreasonable and biased."
In a statement on Wednesday, the China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCME), on behalf of the Chinese automotive industry, expressed "great regret" over the decision to impose anti-subsidy tariffs on electric vehicles originating in China.
As of Wednesday, these duties will apply with different rates for different companies: for BYD, the rates are 17 %, for Geely 18.8 % and for SAIC 35.3 %. Other cooperating companies will be subject to a duty of 20.7 percent, while non-cooperating companies will be subject to a duty rate of 35.3 percent, according to the European Commission.
Following a reasoned request for an individual review, US electric car maker Tesla, which also manufactures vehicles in China, will be subject to a duty of 7.8 percent, the commission said.
The CCCME said that the European Commission failed to correct its "incorrect findings" in its final decision to impose a definitive tariff on Chinese electric vehicles and that there was a serious lack of transparency in the process, adding that the move seriously violates relevant World Trade Organisation (WTO) and EU anti-subsidy rules.
The Chinese Association of Automobile Manufacturers (CAAM) also expressed its disagreement with the decision in a statement on Wednesday. CAAM considers the decision, which is not objective and is extremely unfair to Chinese car companies, unacceptable.
CAAM stressed that the imposition of tariffs not only violates the fundamental principles of free trade and fair competition, but also undermines cooperation between the Chinese and European automotive industries, as well as the green and low-carbon transition.
Earlier on Wednesday, a spokesman for the Ministry of Commerce (MOC) said that China does not approve or accept the European Commission's decision to impose additional tariffs on Chinese electric vehicles.
China has repeatedly pointed out that the EU's anti-subsidy investigation into Chinese EVs is irrational, fraught with numerous irregularities and constitutes a protectionist move under the guise of "fair competition", the MOC said.
China has already referred the matter to the WTO dispute settlement mechanism and will continue to take all necessary measures to protect the legitimate rights and interests of Chinese enterprises, the IOC spokesman noted.
Chinese carmaker SAIC Motor, which has been slapped with a 35.3 % tariff by the European Commission, said it intends to take the case to the European Court of Justice to challenge the decision.
According to the carmaker, the European Commission made errors in identifying subsidies during its investigation, ignored key facts and arguments put forward by SAIC and inaccurately assumed subsidy rates for several items.
The company said the additional tariffs will only increase costs for European car buyers and hinder the widespread adoption of electric vehicles, adding that it is taking steps to adapt to the trade barriers, including stepping up efforts to bring new car models with different powertrains to the European market and expanding its product line under the MG brand.
A new phase of consultation
In announcing the imposition of the duties on Tuesday, the European Commission said that the EU and China continue to work to find WTO-compatible alternatives that would effectively address the issues identified in the investigation, adding that it remains open to negotiating price undertakings.
The MOC spokesperson said that the EU remains open to continuing negotiations on price commitments for Chinese-made electric vehicles, adding that China has always advocated resolving trade disputes through dialogue and consultation and is making every effort to achieve this.
Currently, the technical teams of both parties are engaged in a new phase of consultations. We hope that the European side will work constructively with China, guided by the principles of "pragmatism and balance" and taking into account the other side's core interests, and strive to reach a mutually acceptable solution as soon as possible to avoid escalating trade frictions, the MOC said.
CAAM expressed its hope that the two sides will continue dialogue and consultation to maintain the stable functioning of the global automotive industry and supply chains.
Meanwhile, the CCCME expressed its hope that the EU will approach the consultations with the utmost sincerity and reach a balanced solution acceptable to both sides as soon as possible.
This decision has caused widespread discontent Critics argue that these tariffs could burden European consumers, disrupt EU-China trade and investment ties, hinder Europe's transition to a greener automotive industry and ultimately undermine global efforts to mitigate climate change.
The German Ministry of Economic Affairs reaffirmed its commitment to "open markets", stressed the country's dependence on global trade networks and called for continued negotiations with China to ease tensions while protecting EU industry.
Slovakia, which voted against the tariff increase in October, opposed it. Prime Minister Robert Fico noted that China is "20 years ahead in electric vehicles", and warned that increased trade barriers could ultimately hurt Europe more than China.
Automotive industry leaders have confirmed these concerns. Hildegard Müller, president of the German automotive industry association, criticised the tariffs as "a step backwards for global free trade" and warned of possible job losses, slower economic growth and weakening market prosperity along with other trade disputes. "The door for negotiations remains open. That is the only positive news today," she said, calling for sustained efforts for open negotiations.
Europe's biggest carmakers, including Volkswagen, BMW and Mercedes-Benz, have expressed a united stance against tariffs and advocated open markets that promote fair competition.
Managing Director BMW Oliver Zipse warned that tariffs could "damage the business model of global companies, limit the supply of electric vehicles to European customers and slow down decarbonisation in the transport sector".
Michael Schumann, chairman of the board of directors of the German Federal Association for Economic Development and Foreign Trade, criticised the tariffs as counterproductive and argued that they contradicted the European objectives of promoting electromobility and advancing climate protection.
"The transition to electric mobility is a cornerstone of climate protection and we must support and accelerate this transition," Schumann told Xinhua news agency.
Experts have also had their say, pointing to wider geopolitical influences. Bojan Chukov, a former foreign policy adviser to the Bulgarian prime minister, claimed that the United States was using the EU in its economic rivalry with China.
"China is one of the most environmentally compliant countries. In this respect, it is an example for other countries," he said, adding that the additional duties were driven by 'political imperatives'.
Liang Guoyong, chief economist at the UN Conference on Trade and Development, called EU tariffs "counterproductive".
He noted that protective and restrictive trade measures on green products such as electric cars are at odds with global efforts to reduce carbon emissions and could increase costs for European consumers.
"The imposition of these tariffs would only undermine the economic interests of importers and exporters and jeopardize global progress on climate change," Liang warned.
Xinhua/ gnews - RoZ
PHOTO - Xinhua/Zhao Dingzhe, Gao Jing
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