He Yangdong, spokesperson for China's Ministry of Commerce, talks with reporters at a regular press conference, Beijing, July 4, 2024. /China Media Group
The European Union's (EU) decision to impose provisional countervailing duties of up to 37.6 percent on imports of battery electric vehicles (EVs) from China has drawn strong criticism from the Chinese government and industry representatives. They argue that the move will not only harm the automotive industry but also damage global business interests.
The Chinese Ministry of Commerce (MOC) has urged the EU to engage in consultations with China to avoid the negative consequences of the tariffs. The ministry's spokesperson, He Yangdong, emphasized on Thursday that China has consistently expressed its firm opposition to the EU's anti-subsidy investigation and called for a resolution through dialogue and negotiation.
He further noted that Chinese and EU working teams are currently "expediting consultations" on the preliminary tariffs imposed on Chinese EVs. The goal is to find a "solution acceptable to both parties."
The MOC's statement comes amid growing opposition to the EU's tariffs from within the EU itself. The German Association of the Automotive Industry has warned that the move will harm the interests of European and American manufacturers operating in China. Similarly, BMW has expressed its disapproval, stating that the tariffs will only lead to losses for global businesses.
The EU's decision is based on an investigation that concluded that Chinese EV producers benefit from unfair subsidies from the Chinese government, which China denies. The provisional tariffs, which will be finalized in four months, are intended to counteract these subsidies and protect the interests of European car manufacturers.
Critics argue that the tariffs will have a wider impact, raising prices for consumers and disrupting the global supply chain. They also pointed out that the tariffs could damage cooperation between China and the EU in the automotive sector, which is seen as a key area for future growth.
The EU and China have agreed to engage in consultations to address the issue. With the final decision on the tariffs still four months away, there is hope that a mutually acceptable solution can be found.