China's Ministry of Commerce: China Rejects EU's Electric Vehicle Tariffs

The Chinese Ministry of Commerce announced that it "does not accept" the European Union's decision to raise the customs tariff on Chinese electric vehicles to 45.3%. The additional tariffs will vary from 7.8% for Tesla to 35.3% for SAIC Motor, and will be added on top of the standard 10% import tax applied to cars by the EU.

The ministry stated, "China has repeatedly pointed out that the EU's anti-subsidy investigation into Chinese electric vehicles has many unreasonable and inappropriate aspects, and is a protectionist practice for 'unfair competition'."

Last year, the EU launched an "anti-subsidy" investigation into Chinese electric vehicles, claiming that these vehicles were illegally subsidized, thereby causing "economic harm to or threatening the viability of" the bloc's electric vehicle industry.

China has initiated a case under the World Trade Organization's dispute resolution mechanism. The Ministry of Commerce stated, "China will continue to take all necessary measures to firmly protect the legitimate rights and interests of Chinese companies."

The Chinese Ministry of Commerce also highlighted that the EU indicated it will continue negotiations with China and that both sides are conducting a new round of consultations. The ministry expressed hope that the EU would "work constructively with China to reach an acceptable solution for both parties as soon as possible and to prevent the escalation of trade disputes."