China has voiced strong opposition to the European Union’s tariffs on electric vehicle (EV) imports, labeling them as “unfair.” The country has assured its commitment to safeguard its EV industry against such actions.
What Happened: The Chinese government expressed its dissatisfaction with the EU’s tariffs on EV imports on Wednesday. This follows the EU’s decision to cut duties on several major electric automakers, including Tesla Inc. TSLA, CNBC reported on Wednesday
An official from China’s Ministry of Commerce accused the EU of fostering unfair competition, asserting that the bloc’s probe into China’s subsidies for its EV industry had reached “pre-determined conclusions.”
The European Commission, the EU’s executive body, had on Tuesday reduced import duties on several EV manufacturers importing vehicles from China into the EU. It also set tariffs on Tesla at 9%, a significant drop from the previously expected 20.8% rate.
The Chinese Commerce Ministry retorted by stating that the EU’s final decision “did not fully absorb China’s opinions” and was based on facts unilaterally determined by the EU. The Ministry expressed its “firm opposition and high concern” about this.
"China will take all necessary measures to resolutely defend the legitimate rights and interests of Chinese companies," the Ministry of Commerce spokesperson said, as translated by CNBC.
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China has pledged to take all necessary steps to robustly defend the legitimate rights and interests of its companies against these tariffs.
Why It Matters: This development comes after the EU’s decision to slash tariffs on Tesla’s China-made EVs, a move that could potentially reshape the electric car market in the region. The EU had lowered the tariffs on Tesla's China-made electric vehicles, setting them significantly lower than those imposed on other electric car manufacturers. This decision by the European Commission came two months after the EU raised tariffs on electric cars imported from China, citing unfair state subsidies.
In response to the increased tariffs imposed by the EU and the United States, Chinese EV manufacturers have been exploring Africa as a potential market. The decision by the EU and U.S. to impose higher tariffs on Chinese EVs has led Chinese companies to seek alternative markets.
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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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