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(Yicai) Oct. 30 -- China’s commerce ministry has filed a complaint with the World Trade Organisation after the European Union imposed additional tariffs on imported Chinese-made electric vehicles, saying China does not agree with nor accept the EU’s decision.
China has repeatedly pointed out that the EU’s anti-subsidy investigation into Chinese EVs contains numerous unreasonable and non-compliant issues and amounts to protectionism under the guise of ‘fair competition,’ a ministry spokesperson said in a statement posted on its website.
The European Commission, the EU’s executive branch, announced the imposition of the anti-subsidy tariffs on battery EVs imported from China yesterday. The new tariffs -- ranging from 7.8 percent to 35.3 percent on top of the EU's standard 10 percent auto import duty -- will remain in place for five years, starting from today.
China will continue to take all necessary measures to resolutely safeguard the legitimate rights and interests of Chinese companies, the commerce ministry spokesperson added, while noting that the EU has expressed its willingness to continue consultations with China on price commitments.
China has always advocated resolving trade disputes through dialogue and has consistently made its best efforts in this regard, the person added.
Shanghai-based SAIC Motor was hit by the steepest additional tariff of 35.3 percent, along with carmakers that did not cooperate with the EU’s investigation, which took more than a year. BYD was handed an extra 17 percent duty, Geely 18.8 percent, and Tesla 7.8 percent. Other firms that cooperated with the probe are subject to an extra 20.7 percent tariff.
“The investigation found that the BEV value chain in China benefits from unfair subsidization, which is causing threat of economic injury to EU producers of BEVs,” the EC said. “The EU and China continue to work towards finding alternative, WTO-compatible solutions that would be effective in addressing the problems identified by the investigation.”
SAIC's countervailing duty was lowered from a provisional rate of 38.1 percent in July, while those levied on BYD and Geely fell from 17.4 percent and 20 percent, respectively.
US carmaker Tesla, which also produces vehicles in Shanghai, was handed the smallest increase after a substantiated request for an individual examination, according to the EC.
China hopes the EU will work constructively with it to advance discussions based on the principles of pragmatism and balance, address core concerns, and reach an acceptable solution for both sides as soon as possible to avoid an escalation in trade friction, the ministry spokesperson said.
Editor: Martin Kadiev