Published on September 16th, 2023 | by Sounder Rajen

China Lashes Out And Warns EU Of Consequences For Possible EV Tariffs

As has been the case for a while, the West wants to tax products from China now

Well, I suppose this was only a matter of time now. After all, if history has taught us anything, it’s that the East can always find a way to make decent products at a much better price than most Western brands and when Eastern products eventually outsell Western products in the West, they tax and tariff the Eastern products.

Now, it has been said that Chinese officials have lashed out against European regulators after it was revealed that the European Commission is opening a probe into Chinese-made electric vehicles (EVs) flooding the local market. I mean, surely Chinese EVs cannot simply be cheaper and thus a better buy in the EU, right?

Moreover, European Commission President, Ursula von der Leyen asserts that state subsidies in China have allowed carmakers to keep their EV prices artificially low. The probe could lead to tariffs being applied to EVs built in China and sold in Europe, leading to a fierce response from China’s Ministry of Commerce.

The Ministry said, “(The investigation) is a naked protectionist act that will seriously disrupt and distort the global automotive industry and supply chain, including the EU, and will have a negative impact on China-EU economic and trade relations.”

BYD Atto3 Extended Range — BYD Atto 3 EV SUV

“China will pay close attention to the EU’s protectionist tendencies and follow-up actions, and firmly safeguard the legitimate rights and interests of Chinese companies.” It concluded.

On top of that. the top official for China’s European affairs, Wang Lutongm took to X (formerly Twitter) to express his frustration at the investigation, noting that there are plenty of countries in Europe that also subsidize EVs.

He wrote, “According to info from ACEA_auto, many EU members subsidize their #ElectricVehicle industries. In what position is EU_Commission to launch anti-subsidy investigation into electric vehicles from #China? This is nothing but sheer protectionism.”

Officials believe that Chinese EVs are undercutting locally produced models by roughly 20 percent and assert they could account for 15 percent of all EVs sold in Europe in 2025.

Speaking with Reuters, Mercedes-Benz says protectionist measures would be counterproductive while Bosch added that potential punitive tariffs and trade barriers would only have losers. Analysts also note that any tariffs the EU may levy on Chinese-made EVs would likely lead to retaliatory action from Beijing.

Earlier this week, China revealed that it will continue to impose anti-subsidy duties on potato starch imports from the European Union for the next five years, South China Morning Post reports. So what do you guys think? Is the EU just trying to stop Chinese EV sales in the region to sell its own ones or is this a justifiable move?