China accuses the EU of 'protectionism' after imposing hefty 'anti-subsidy tariffs' on Chinese EVs

European Union Trade Commission Valdis Dombrovskis has dismissed the Chinese accusations "pure protectionism" after the block was imposed "anti-subsidy" tariffs on EV imports from China rose to 35.3% on Wednesday, saying they were proportionate and that competition in the sector must be underpinned by fairness and a level playing field. Photo by Caisa Rasmussen/EPA-EFE

European Union Trade Commission Valdis Dombrovskis rejected Chinese accusations of “pure protectionism” after the bloc imposed “anti-subsidy tariffs” on electric car imports from China on Wednesday, rising to 35.3%, saying they were proportionate and that competition in the sector is based on fairness and a level playing field. Photo by Caisa Rasmussen/EPA-EFE

Oct. 30 (UPI) — China on Wednesday lashed out at European Union tariffs on imports of Chinese-made battery-electric vehicles, accusing the 27-member bloc of “pure protectionism” that will harm East-West supply lines, consumers and efforts to tackle the climate crisis to catch would be harmful. it had filed a complaint with the World Trade Organization.

“The EU’s anti-subsidy investigation and high tariffs on Chinese electric cars – neither of which have been demanded by the industry – are pure protectionism that is damaging China-EU supply chain cooperation, European consumers and green transition and the EU’s global climate response. Foreign Ministry spokesman Lin Jian wrote in an email message on X.

Lin said “trade frictions” can best be addressed by talking to each other respectfully and through consultation in a way that serves the interests of all parties and what business and the public expect.

“We urge the EU to continue its consultations with China, work constructively and show sincerity and flexibility to find the solution and avoid escalating trade frictions,” he added.

The European Commission on Wednesday announced double-digit tariffs on “unfairly subsidized” Chinese electric vehicles for a period of five years. a press release that the year-long anti-subsidy investigation found that China’s BEV value chain benefited from unfair state subsidies that posed a threat of economic harm to EU producers.

The three major Chinese EV manufacturers – BYD, Geely and SAIC – will be subject to tariffs of 17%, 18.8% and 35.3% respectively, with the tariffs taking effect immediately. 35.3% tariff, along with other EV manufacturers deemed “uncooperative”.

The vehicles of companies that are expected to “cooperate” will receive a flat rate of 20.7%.

Tesla was assigned a rate of 7.8% after a “substantiated request” to investigate its situation individually.

However, the commission stressed that negotiations between the EU and China would continue in the hope of reaching alternative WTO-compatible solutions and that it remained open to concluding agreements that would reduce the minimum price of electric vehicle imports with individual exporters would limit.

Trade Commissioner Valdis Dombrovskis stressed that the EU remains the “world champion for open, fair and rules-based trade”.

“We welcome competition, including in the electric vehicle sector, but this must be underpinned by fairness and a level playing field. By taking these proportionate and targeted measures following a rigorous investigation, we are standing up for fair market practices and for the European industrial base,” he said.

The Commerce Ministry said China has repeatedly pointed out that the EU’s anti-subsidy investigation into electric vehicles in China included many “unreasonable and non-compliant” aspects and was a protectionist approach that promoted “unfair competition” in the name of “fair competition ‘. .

“China neither agrees nor accepts the ruling and has filed a lawsuit under the WTO Dispute Settlement Mechanism. China will continue to take all necessary measures to resolutely protect the legitimate rights and interests of Chinese enterprises,” the ministry said. a press release.