China Wants EU To Remove EV Tariffs by July 4

In Summary

  • China wants the EU to cancel tariffs (up to 38.1%) on Chinese electric vehicles before July 4th.
  • China says these tariffs are unfair and could lead to a trade war.
  • The EU is investigating claims of unfair subsidies to Chinese EV makers.
  • Talks are possible after a meeting between EU and Chinese officials.
  • China says its EV success is due to advancements, not subsidies.


BEIJING, Monday, June 24, 2024- China is urging the European Union to scrap its planned tariffs on Chinese-made electric vehicles (EVs) before July 4, according to state media reports.1

The tariffs, set at up to 38.1%, were imposed by the EU while it investigates claims of unfair subsidies to Chinese EV manufacturers.

Beijing is wary of a trade war reminiscent of the one with the United States under the Trump administration. However, they have indicated they will take steps to protect Chinese companies if necessary.

The call for tariff removal comes after a meeting between EU trade chief Valdis Dombrovskis and Chinese Commerce Minister Wang Wentao on Saturday, June 22.

The meeting, which took place during a visit by Germany’s economy minister, signifies a potential opening for talks. Chinese observers, cited by the state-controlled Global Times, believe the ideal outcome would be the EU’s withdrawal of the tariffs before the July 4 deadline.2

They warn that the EU’s protectionist measures could lead to retaliatory actions from China and a worsening of trade relations between the two blocs.

Earlier this month, the European Commission proposed tariffs of up to 38% on electric cars from China, in addition to the existing 10% tariff on imported cars.

The commission stated that China’s electric car sector receives substantial subsidies from the government and state-controlled banking system.

The rising exports of Chinese electric vehicles present an increasing challenge to European automakers.

The EU’s anti-subsidy investigation is expected to conclude on November 2, with a final decision on the tariffs.

China maintains its EV industry’s success is due to technological advancements, a robust domestic market, and a well-established supply chain, not unfair subsidies.

Sources
  1. finance.yahoo.com: https://finance.yahoo.com/news/china-wants-eu-scrap-ev-021607759.html[↩]
  2. www.globaltimes.cn: https://www.globaltimes.cn/page/202406/1314671.shtml[↩]
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