Business TENSIONS
Beijing responded on Thursday when American officials suggested that Canada might become the latest European nation to impose extra tariffs on Chinese electric cars and batteries.
According to a record posted on the commerce ministry website,” Canada should regard facts, abide by WTO rules, and make a good, non-discriminatory, and repetitive market environment for the typical development of the China-Canadian electric vehicle industry.”
Beijing has criticized the EU’s plans to establish new levies of up to 38 % on Chinese electric vehicles by July 4 for what it calls “pure mercantilist”.
Beijing has denied the claim that large state subsidies in China have caused unfair contest in local areas.
The United States hiked tariffs on US$ 18 billion worth of imports from China next month, targeting strategic sectors such as electric vehicles, batteries, steel and essential minerals, a move Beijing warned do” greatly change” relations between the two nations.
At a World Economic Forum meeting this year, Chinese Premier Li Qiang asked nations to “oppose coupling.”
However, according to analysts, China may eventually need to cut back on its reliance on foreign markets to ensure a full recovery.
Andrew Batson and Wei He of Gavekal Dragonomics wrote this week,” For China to maintain its improvement, it needs to increase its modern and innovation capabilities and overcome the limitations imposed by American nations.”
This calls for the authorities to no longer just focus on short-term growth; instead, it must direct the allocation of resources to accomplish the government’s policy objectives of technological upgrading and technological innovation.