EU tariffs on Chinese EVs spark opposition globally

Associations and businesses across the electric vehicle (EV) industry have voiced opposition and concerns against the European Commission's plan to impose extra duties on imports of battery EVs from China from July.

The EU's move will not only damage the legitimate rights and interests of China's EV industry and disrupt the mutually beneficial cooperation between China and Europe in new energy vehicles, but also distort the global automobile industry chain and supply chain, He Yadong, spokesperson of the Chinese Commerce Ministry, said at a press conference on Thursday.

The EU should properly handle economic and trade frictions and expand cooperation in healthy competition to achieve a win-win resolution, he added.

Meanwhile, China's trade promotion body, the China Council for the Promotion of International Trade (CCPIT), expressed strong opposition to the EU's plan to add duties on imports of Chinese EVs on the same day, describing it as "notably unfair" and a "typical double standard."

A spokesperson for the CCPIT said that the EU's investigation blatantly violated rules of the World Trade Organization (WTO) as its unfair procedure prevented the participation of Chinese carmakers, adding that Chinese industries and businesses would defend their legal rights under WTO regulations.

The CCPIT also accused the EU of having double standards as it has provided substantial subsidies to its own EV and battery industries.

Opposition and concern from industry associations

The China Association of Automobile Manufacturers (CAAM) said on Thursday that it hopes the European Commission will not view the current phase of "whole-vehicle trade," which is a necessary stage of development for the industry, as a long-term threat. 

It further urged against the politicization of economic and trade issues and cautioned against the misuse of trade measures.

The CAAM added that it is necessary to avoid damaging and distorting the global automobile industry and supply chain, and maintain a fair, non-discriminatory and predictable market environment.

Meanwhile, the China Chamber of Commerce for Import and Export of Machinery and Electronic Products on Wednesday said that the EU's investigation has disregarded WTO and EU anti-subsidy rules, disregarded objective facts and arbitrarily increased subsidy levels.

The development of China's EV industry relies not on government subsidies but on continuous technological innovation, complete industry and supply chains and sufficient market competition, the chamber noted.

Auto industry condemns 'EU protectionism'

BMW CEO Oliver Zipse criticized the EU commission's plan and said it was "the wrong way to go" and would damage European companies and interests. 

"Protectionism risks starting a spiral: Tariffs lead to new tariffs, to isolation rather than cooperation," he said.

Volkswagen rejected the planned tariffs, saying that "the negative effects of this decision outweigh any benefits for the European and especially the German automotive industry."

Mercedes-Benz told CGTN that they support a liberal trade regulation based on WTO rules, which includes the principle that all participants operate under the same conditions. 

Free trade and fair competition ensure prosperity, growth and innovation, the German carmaker said, adding that if a general trend towards protectionism gains a foothold, this will have negative economic consequences for all stakeholders involved.

SAIC Motor said on Thursday that the relevant measures of the European Commission not only violate the principles of market economy and international trade rules, but may even have a greater adverse impact on the stability of the global automobile industry chain and China-EU economic and trade cooperation.

(With input from Xinhua)