Chinese Ministry of Commerce condemns EU's anti-subsidy ruling on EVs

The spokesperson for China's Ministry of Commerce has voiced strong dissatisfaction and concern over the European Union's (EU) preliminary ruling on the anti-subsidy investigation against Chinese electric vehicles (EVs).

The European Commission announced on Wednesday that it would propose the imposition of temporary anti-subsidy duties of up to 38.1 percent on imported EVs from China. Chinese companies like BYD, Geely and SAIC would face tariffs of 17.4 percent, 20 percent and 38.1 percent, respectively. Other companies cooperating with the investigation would face a tariff of 21 percent and non-cooperating companies 38.1 percent. The Commission said the tariffs are likely to be in place by July.

In a statement released on Wednesday, China's Ministry of Commerce spokesperson said the EU's decision disregards the facts and World Trade Organization (WTO) rules, despite China's repeated strong objections and calls from several EU member states and industry sectors urging against such measures. The EU's unilateral action has led to profound disappointment and firm opposition from the Chinese industry.

The Chinese side argues that the EU's ruling lacks a factual and legal basis, accusing the EU Commission of ignoring the competitive advantages of Chinese EVs stemming from open competition. The EU is also accused of fabricating and exaggerating the so-called subsidy issues, misusing the "available facts" rule and imposing an excessively high subsidy rate.

China's Ministry of Commerce labels the EU's actions as "protectionist behavior" and "unfair trade practices," stating that they not only undermine the legitimate rights and interests of China's EV industry but also disrupt the global automotive industry chain and supply chain, including within the EU.

The spokesperson further highlighted that the EU's actions are counter to the spirit of cooperation agreed upon by the leaders of China and the EU. These actions are said to politicize and weaponize trade issues, negatively impacting the bilateral trade cooperation atmosphere and consumer interests in the EU. Moreover, it is believed that such measures will also hinder the EU's green transformation and global efforts to combat climate change.

The Chinese Ministry of Commerce urges the EU to correct its approach immediately and follow through on the important consensus reached recently by the leaders of China, France and the EU through dialogue and consultation to properly resolve trade frictions. The Chinese side will closely monitor the EU's next steps and is prepared to take all necessary measures to firmly defend the legitimate rights and interests of Chinese enterprises.