China Warns EU Tariffs on EVs Will 'Harm' European Interests

Beijing, China - June 12, 2024 — China issued a stern warning on Wednesday regarding the European Union's anticipated imposition of additional tariffs on Chinese electric vehicles (EVs), claiming such measures would "harm Europe’s interests" and criticizing the EU’s "protectionism."

The European Commission is expected to announce new duties on Chinese EV imports later today, according to industry sources cited by AFP. These sources suggest the tariffs could be as high as 25 percent, adding to the existing 10 percent duty on these vehicles.

Chinese foreign ministry spokesman Lin Jian condemned the move, stating it "goes against the principles of market economy and international trade rules." He argued that the tariffs would undermine economic and trade cooperation between China and the EU and destabilize the global automobile production and supply chain.

"It undermines China-EU economic and trade cooperation as well as the stability of the global automobile production and supply chain," Lin said during a press briefing.

Lin urged the EU to reconsider its stance, emphasizing the importance of maintaining free trade principles. "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," he added.

The dispute comes amid increasing tensions between China and the EU over trade practices and market access. The potential tariffs are seen as part of the EU's broader strategy to protect its automotive industry from the rapid influx of competitively priced Chinese EVs, which have gained significant market share in recent years.

China's robust response highlights the high stakes involved. The Chinese government has indicated that it will take all necessary measures to defend its interests. "China will take all necessary measures to firmly safeguard its legitimate rights and interests," Lin declared, though he did not specify what actions might be taken.

This development is likely to further strain China-EU relations, which have already been tested by disagreements over issues ranging from technology and security to human rights and environmental standards. The outcome of this tariff dispute could have significant implications for the global automotive industry and international trade dynamics.