The European Commission’s decision to move ahead with Tariffs on Chinese-made electric vehicles (EV Tariffs) threatens to undermine decades of cooperation between China and the EU and jeopardize climate change goals, Xinhua news agency reported on Saturday.
On Friday, the EU said it would press ahead with high tariffs on electric vehicles made in China, even after the bloc’s biggest economy, Germany, rejected them. The dispute is its biggest trade spat with Beijing in a decade.
State-run Xinhua said the move revealed a “deep-seated protectionist impulse”.
“Instead of promoting cooperation, these tariffs risk igniting a trade conflict that could damage not only China-EU relations but also Europe’s own ambition for a green transition,” it said.
“The way forward is clear: protectionist tariffs must be abandoned in favor of continued negotiations.”
European imports of Chinese-made electric vehicles have soared in recent years, raising concerns among some domestic electric vehicle makers that they could suffer significant losses from a wave of cheap Chinese electric vehicles.
Proposed tariffs on electric cars made in China of up to 45% will cost carmakers billions of extra dollars to bring cars into the bloc and are set to be imposed from next month for five years.
The commission, which oversees the bloc’s trade policy, said the tariffs would address what it sees as unfair Chinese subsidies after a year-long anti-subsidy investigation. However, he said on Friday that he would continue talks with Beijing.
A possible compromise could be to set minimum selling prices.
China’s commerce ministry has expressed strong opposition to the planned tariffs, calling them “unfair, incompatible and unreasonable”. He challenged them at the World Trade Organization.
In what has been seen as a retaliatory move, Beijing this year launched investigations into imports of cognac, dairy products and pork from the EU.
US imposes 100% tariff on imported Chinese electric cars.
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Reference;
Boughedda, S. (2024) BCA says investors should fade the real estate rally By Investing.com, Investing.com. Investing.com. Available at: https://www.investing.com/news/stock-market-news/bca-says-investors-should-fade-the-real-estate-rally-3647917 (Accessed: 5 October 2024).
