China to retaliate if Europe raises EV tariffs  – Asia Times

China to retaliate if Europe raises EV tariffs  - Asia Times

Beijing has pledged to retaliate if China ignores its warning and imposes additional tariffs on Chinese electric vehicles ( EVs ).

According to Reuters, the EU previously scheduled the date for its announcement regarding temporary tariffs on Chinese electric vehicles for June 5, but moved it forward until June 10.

The pause is intended to prevent the June 6 through June 9 elections for the European Parliament from being impacted, according to the report.

On June 1, Wang Wentao, the head of Taiwanese trading, told some Chinese businesses in Barcelona, Spain, that the EU’s recent studies into Chinese Vehicles and other products were carried out under false pretenses like Chinese overcapacity and unfair competition.

He said these probes involved unfair use of industry remedies, global procurement instruments, and international payment regulations. He added that those actions had increased the chance of intensifying China-EU business tensions.

We hope that Chinese and European businesses can overcome obstacles and work together to create initiatives for economic and trade cooperation between China and Europe, he said. These projects may exhibit a strong inclusion of the two business chains in particular.

He called on the Euro to prevent its “protectionism” and cooperate with China. &nbsp,

His remarks followed a five-page letter from the Chinese Commerce Ministry to the EU, which expressed major concerns about the European Commission’s recently launched trade investigations.

Beijing called for a ceasefire to stop further increase, but it warned that China’s agricultural and aerospace sectors had become its target in retaliation.

China announced last month that it might impose taxes as high as 25 % on imported cars with big machines. If that happens, Germany will get hit by China’s measures. &nbsp,

The Chinese authorities may launch an anti-dumping research into EU-sourced meat exports, according to the state-owned Global Times on May 26. &nbsp,

Last year, China imported 2.2 million tons of meat, followed by Japan’s 1.47 million loads and Mexico’s 1.28 million tons, according to Statista.com. The country primarily imported meat from Spain, Brazil, the United States, Denmark and the Netherlands. &nbsp,

Chinese EV satellites

The European Commission launched a 13-month research into whether state subsidies have helped Chinese electric car manufacturers gain market share in recent years on October 4th, 2013. Nine decades after the investigation begins, it has the authority to impose temporary anti-subsidies. &nbsp,

US Treasury Secretary Janet Yellen demanded that the Union follow in the US’s feet and take steps to protect itself from harm caused by China’s business overcapacity in a visit to Germany on May 21. &nbsp,

However, the EU delayed making an announcement about its selection. &nbsp,

A Henan-based journalist writes in an article on May 31 that” the pause of the EU’s statement showed that China’s caution of retribution has shown its effects.” &nbsp,

Although some EU members want to impose tariffs on Chinese electric vehicles, France and Germany continue to oppose the increase in taxes, he claims. &nbsp, &nbsp, &nbsp,

He claims that China will apply the same rules to France’s Airbus and the EU’s vineyards and dairy items if the EU insists on imposing tariffs on Chinese Vehicles.

BMW and Volkswagen executives warned against imposing International import taxes on Chinese electric vehicles on May 8. They claimed that rising tariffs will encourage China’s retaliation and promote global commerce protection. &nbsp,

Presently, the EU applies a 10 % tax on all imported vehicles, regardless of their history. The US will start imposing tariffs on Chinese electric vehicles starting on August 1st, going up 25 % to 100 %.

The Kiel Institute, a Germany- based business for economic study, said in a report on May 31 that if the EU imposes 20 % levies on imports of Chinese electric cars, the size of imported Chinese Vehicles will fall by 25 %, or 125, 000 products worth US$ 3.8 billion. &nbsp,

According to the report, a drop in Chinese EV exports may result in higher prices for local electric vehicles in Europe as a result of higher regional production costs. But, it added that BYD, a manufacturer of electric vehicles in China, had then construct new European facilities to meet local demand. &nbsp,

In addition, according to a report from Nikkei Asia on June 1 Great Wall Motor will shut down its Munich office on August 1 and employ all 100 there. It stated that the company was disappointed by German Vehicle sales. &nbsp,

Industrial overcapacity

Apart from the studies of Taiwanese Vehicles, the EU has also in recent months looked into China’s railway trains as well as tools used for solar, wind energy technology, safety inspections and medical devices.

At a Parisian trilateral meeting on May 6th, Chinese President Xi Jinping told French President Emmanuel Macron and European Commission President Ursula von der Leyen that there is no such thing as” China’s overcapacity problem.”

” While reaffirming our attention in a healthy and bilateral cooperation, we express concerns about China’s extensive use of non- market policies and practices that undermines our workers, industries, and financial resilience”, G7 finance ministers and key bank governors said in a joint statement on May 25.

Read: Company headquarters raided, China calls EU’ interventionist’

Following Jeff Pao on Twitter: &nbsp, @jeffpao3