China Says European Union 'Intimidated And Coerced Chinese Enterprises' As Potential EV Trade War Looms Large: 'Responsibility Lies Entirely With The EU Side'

In the wake of escalating tensions with the European Union (EU) over electric vehicle (EV) imports, China has issued a warning that a trade war could be imminent. The cautionary note comes as Germany’s economy minister, Robert Habeck, visits Beijing, with the proposed tariffs being a primary focus of his agenda.

What Happened: The warning was sounded during Habeck’s visit to the Chinese capital, which marked the first visit by a senior European official since Brussels proposed hefty duties on imports of Chinese-made EVs, Reuters reported on Friday.

“Responsibility lies entirely with the EU side,” a spokesperson for China’s commerce ministry said in a statement.

“In its countervailing duties investigation, the European side intimidated and coerced Chinese enterprises, threatened to apply punitive high tariff rates, and demanded overly broad information.”

The suggested duties, designed to counterbalance excessive subsidies, have elicited countermeasures from China and strong criticism from Chinese leaders. In retaliation to the EU Commission’s action, Chinese automakers have called on Beijing to raise tariffs on imported European gasoline-powered cars, and the government has launched a dumping investigation into EU pork imports.

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Habeck’s visit is seen as a chance for Germany to clarify the recent tariff announcement to Chinese officials and reduce the risk of Chinese retaliation that could negatively impact German businesses. Germany’s leading car manufacturers have strongly opposed the EU tariffs, and Berlin has called for dialogue while also expecting China to compromise.

Why It Matters: The EU’s proposed tariffs come in the wake of China’s declaration to protect its interests against potential tariffs on its EVs.

China has reportedly invested over $230 billion in the past decade to develop its EV industry. The EU’s proposed tariffs and China’s response could significantly impact the global EV market, particularly as other countries like Canada are also considering imposing tariffs on Chinese EVs.

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Photo by Andrey Vandyshev on Shutterstock.

This story was generated using Benzinga Neuro and edited by Pooja Rajkumari