China came out strongly on Wednesday, June 12th, against the European Union’s, EU, decision to raise the tariff on electric vehicles imported from China. To Beijing, the tariff rise was protectionist and damaging to Europe’s interests.
In September, the European Commission President Ursula von der Leyen accused China of unfairly subsidizing its electric vehicle producers, creating an uneven playing field in this fast-growing market. Her response was to start an anti-subsidy investigation into her charges.
The European Commission is poised on Wednesday to slap new charges, or tariffs, on Chinese electric cars, people with knowledge of the decision said. These new duties could be as much as 25% on top of the 10% customs duties already levied.
Beijing’s criticism on Monday indicated the degree to which tension between the EU and China is escalating over trade policies and market access. As the global market for electric vehicles revs up, this development exposes the complex dynamic of economic interests and regulatory measures to ensure fair competition.