The Commerce Ministry of China has vowed to protect Chinese firms at all costs after the European Union decided to drastically increase tariffs on Chinese electric cars. The tariffs, ranging up to 45.3 percent, will be implemented following an inquiry that found Beijing was providing unfair state subsidies to its carmakers, undercutting European competitors.
Beijing expressed disagreement with the tariffs and criticized the EU’s decision to negotiate price commitments while also launching investigations into imports of European dairy and pork products. The European Commission announced the tariff hikes after failed negotiations with China over their dispute on electric vehicle sales.
The EU will impose tariffs on Chinese carmakers such as Tesla, BYD, and SAIC, with the argument that state subsidies have given them an unfair advantage over European competitors. Chinese carmakers accounted for 19.5 percent of EVs sold in the EU last year, a number predicted to grow to over one-quarter by 2024.
EU trade chief Valdis Dombrovskis defended the tariffs as necessary to maintain fair competition and protect the European industrial base. However, the decision has sparked concerns within the EU itself, with Germany and Hungary warning of a potential trade war with China.
The ongoing trade dispute highlights the growing tensions between the EU and China, as both sides seek to protect their economic interests in the global market. The EU’s decision to raise tariffs demonstrates its commitment to fair trade practices, while China’s pledge to protect its firms suggests a possible escalation in the conflict.
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