Beijing (Business Emerge), October 7: The European Commission’s recent move to impose tariffs on Chinese-manufactured electric vehicles poses a significant threat to decades of EU-China cooperation and may jeopardize climate-change goals, Chinese state media outlet Xinhua reported on Saturday.
On Friday, the EU confirmed it would proceed with substantial tariffs on electric vehicles (EVs) imported from China, despite opposition from Germany, the bloc’s largest economy. This represents the biggest trade dispute with Beijing in over ten years.
According to Xinhua, the decision exposes a “deep-seated protectionist impulse.” The state-run outlet argued that, instead of fostering cooperation, these tariffs might escalate into a trade conflict that could negatively impact both EU-China relations and Europe’s green ambitions. “The path forward is clear: Protectionist tariffs must be abandoned in favor of continued negotiations,” Xinhua added.
In recent years, European imports of Chinese-manufactured EVs have increased significantly, raising concerns among some European manufacturers that the influx of lower-cost Chinese EVs could lead to significant losses for domestic producers.
The proposed tariffs—up to 45% on Chinese-built EVs—would impose billions of dollars in additional costs for automakers seeking to bring these cars to the European market. These duties are set to be enforced for five years starting next month. The European Commission, responsible for overseeing the bloc’s trade policies, explained that the tariffs are intended to counteract what it views as unfair Chinese subsidies, following a year-long anti-subsidy investigation. Despite this, the Commission stated on Friday that it would continue discussions with Beijing. A potential compromise could involve setting minimum sales prices.
China’s Ministry of Commerce has voiced strong opposition to the planned tariffs, describing them as “unfair, non-compliant, and unreasonable.” In response, the ministry has challenged the tariffs at the World Trade Organization. Additionally, in what is perceived as a retaliatory measure, Beijing has launched investigations into EU imports, including brandy, dairy, and pork products.
Meanwhile, the United States already imposes a 100% duty on imported Chinese electric vehicles.