Trade war: Chinese automakers asked for retaliatory tariffs on European Union vehicles

Trade war: Chinese automakers asked for retaliatory tariffs on European Union vehicles
Trade war: Chinese automakers asked for retaliatory tariffs on European Union vehicles

The EU’s trade policy is becoming increasingly protectionist amid concerns about China’s development model (EFE/EPA/Alex Plavevski)

The chinese automotive they urged Beijing to retaliate against the decision of Brussels to impose restrictions on Chinese exports of electric vehicles, raising tariffs on imported European gasoline-powered cars, the state newspaper reported Wednesday Global Times.

In a closed-door meeting on Tuesday, also attended by European automakers, the Chinese auto industry “called on the government to adopt firm countermeasures (and) suggested that the possibility of increasing the provisional tariff on gasoline cars with large displacement engines be positively considered,” according to the report.

Visitors look at cars at the BYD exhibition during the China Auto Fair in Beijing (AP Photo/Tatan Syuflana, File)

The meeting was organized by the Chinese Ministry of Commerce and was held in Beijing. It was attended by SAIC, BYD, BMW, Volkswagen and its Porsche division. The main goal of the meeting was to pressure Europe over tariffs Brussels announced last week to protect its auto industry from Chinese competition, two people with direct knowledge of the matter said. Mercedes-Benz, Stellantis and Renault also attended the meeting.

A spokesperson for Mercedes Benz said the group supports a Liberal trade regime based on WTO rules. ”In the context of globalization and economic interdependencies of our time, the motto to guarantee prosperity and peace is: dialogue and constructive cooperation. We count on the efforts of politicians to continue this dialogue.”

A Mercedes Benz E300 is displayed at the Beijing International Automobile Exhibition (REUTERS/Tingshu Wang)

Industry insiders say both Europe and China have reason to want to reach a deal in the coming months to reduce tensions and avoid adding billions of dollars in new costs for Chinese electric vehicle makers, while the EU process allows for review.

The announcement of imposing tariffs could trigger talks between Brussels and Beijing aimed at avoiding them, said Stefan Hartung CEO of Bosch, the world’s largest automobile supplier. The European Commission said on Wednesday it was investigating the situation “with a view to discussing whether a mutually acceptable solution can be found.”

The commercial policy of the EU It is becoming increasingly protectionist amid concerns that China’s production-focused, debt-driven development model could flood the bloc of 27 with cheap products, including electric vehicles, at a time when Chinese companies are looking abroad due to to the weakness of domestic demand.

Bosch is the largest automobile supplier in the world (EPA/MICHAEL REICHEL/File)

The European Commission’s June 12 announcement that it would impose anti-subsidy tariffs of up to 38.1% on imported Chinese electric vehicles Starting in July, it follows the increase in tariffs USA to Chinese cars in May and opens a new front in the Western trade war with Beijing.

He Global Times first reported late last month that a Chinese government-affiliated automotive research center was suggesting that China raise its import tariffs on imported gasoline sedans and sport utility vehicles with engines larger than 2.5 liters to 25%. , from the current rate of 15 percent.

Chinese authorities have previously hinted at possible retaliatory measures through comments in state media and interviews with industry figures.

The same newspaper suggested last month that Chinese companies planned to ask authorities to open an “anti-dumping” investigation into European pork products, which the Chinese Ministry of Commerce announced on Monday it would launch. It has also urged Beijing to investigate imports of dairy products from the EU.

(With information from Reuters)

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