‘Think again’
China urges the European Union to review import duties on Chinese electric cars and not to move further in the ‘wrong direction’.
The state news agency Xinhua reported this in a commentary on the levies announced on Wednesday that the European Commission wants to introduce from July 4. “China and the EU would benefit most from cooperation on key economic and trade issues,” Xinhua said. “It is to be hoped that the EU will think again and not move further in the wrong direction.”
According to the European Commission, China practices unfair competition by subsidizing its own manufacturers. If nothing changes, there will be additional levies of up to more than 38 percent. Brussels thus appears to leave room for consultation to find a solution, Xinhua concludes in the commentary.
The Chinese response, according to industry insiders, indicates a desire not to escalate the situation. China warned that the country may file a complaint with the World Trade Organization (WTO) over the planned new EU import tariffs. “China reserves the right to file a lawsuit with the WTO and take all necessary measures to resolutely defend the rights and interests of Chinese companies,” a spokesperson for China’s Ministry of Commerce said.
According to the ministry, the European actions violate WTO rules and the EU is thus demonstrating “purely protectionist behavior”. Also, the higher import duties will not only violate the legal rights and interests of China’s electric car sector, but will also disrupt car production and supply chains around the world, the ministry warned.
– Thanks for information from Autoweek.nl