BYD electric cars waiting to be loaded on a ship stacked at the international container terminal of Taicang Port at Suzhou Port, in China's eastern Jiangsu Province. (Photo by AFP) / - China OUT / - CHINA OUT / TO GO WITH AFP STORY CHINA-EU-US-AUTO-TRADE, ANALYSIS
European Union (EU) countries on Friday gave a definitive green light to hefty additional tariffs on electric cars made in China, despite strong opposition led by Germany, European diplomats told AFP.
Ten countries including France and Italy supported slapping tariffs of up to 35.3%, on top of the current 10%, EU diplomats said, while five including Germany and Hungary voted against and 12 abstained.
In response, China’s commerce ministry in response said it “firmly opposes the EU’s unfair, non-compliant and unreasonable protectionist practices in this case.”
It “firmly opposes the EU’s imposition of anti-subsidy duties on Chinese electric vehicles,” a spokesperson added.
The ministry urged EU countries to “return to the right track” by resolving trade friction through dialogue, promising to “safeguard the interests of Chinese companies.”
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Chinese car giant Geely expressed “great disappointment” in the move.
“The decision is not constructive and may hinder EU-China economic and trade relations, ultimately harming European companies and consumer interests,” the firm said.
Although the tariffs did not win support from a majority of EU states, the opposition was not enough to block them, which would have required at least 15 states representing 65% of the bloc’s population.
The European Commission said it had “obtained the necessary support for the adoption of tariffs”.
The move has, however, been criticised by EU automakers. Volkswagen, which makes around a third of its sales in China, said the extra duties “were the wrong approach and would not improve the competitiveness of the European automotive industry.”
It called on the EU and China to continue talks with the aim of a “political solution” before the new tariffs come into effect at the end of October.
“The common goal must be to prevent any countervailing duties and thus a trade conflict.”
Oliver Zipse, CEO of BMW, said the tariffs were a “fatal signal for the European automotive industry” and called for a “quick settlement” between the EU and China.
But he added: “The fact that Germany voted against the tariffs is an important signal and increases the chances for a negotiated settlement.”
Retaliatory steps by Beijing would be a heavy blow for Germany’s auto giants, which have already been struggling in China due to its economic problems and fierce competition from local rivals, particularly for EV sales.
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