China warns EU tariffs on EVs would ‘harm’ Europe’s interests

BEIJING — China warned Wednesday that expected additional EU tariffs on imports of Chinese electric vehicles would “harm Europe’s interests” and condemned the bloc’s “protectionism”.

The EU Commission is set to impose Wednesday fresh duties on EVs imported from China, industry sources told AFP.

“It goes against the principles of market economy and international trade rules, undermines China-EU economic and trade cooperation as well as the stability of the global automobile production and supply chain,” Chinese foreign ministry spokesman Lin Jian said.

The sources said the expectation was that the tariffs would be “up to 25 percent”, on top of the existing 10 percent duty.

READ: EU to take ‘targeted’ approach on any illegal China subsidies

“We urge the EU side to honor its commitment of supporting free trade and opposing protectionism and work with China to uphold the overall interests of China-EU economic and trade cooperation,” Lin said.

“China will take all necessary measures to firmly safeguard its legitimate rights and interests,” he warned.

Europe’s automotive sector is the jewel in its industrial crown — behind iconic brands from Mercedes to Ferrari — but it faces an existential threat from the looming end of combustion engines and China’s head start in the switch to electric.

Chinese EV subsidies

Brussels launched a probe last year into Chinese electric car subsidies, with officials saying they wanted to put the brakes on what they claimed were unfair practices undercutting Europe’s car manufacturers.

The EV standoff comes in a context of rising trade tensions between Beijing and Western countries, which are investing billions in the energy transition and accuse the Asian giant of unfair competition on everything from wind turbines to solar panels.

READ: EU seeks roadblocks for Chinese EVs without sparking trade war

European Commission President Ursula von der Leyen has said the EU was planning “targeted” action after the United States quadrupled its duties on Chinese electric cars to 100 percent.

China is the world’s biggest car exporter and Europe is a critical market.

EU imports of EVs from China mushroomed from around 57,000 in 2020 to around 437,000 in 2023, the US-based Peterson Institute for International Economics said.

Their value rose over the same period from $1.6 billion to $11.5 billion, according to Rhodium Group.