China has strongly criticized the European Union’s decision to impose tariffs of up to 38.1% on Chinese electric vehicles, calling it protectionist behavior and urging the EU to correct its “wrong practices,” reports Reuters. The reaction from China and other stakeholders, including European and Chinese automakers, highlights the opposition to the EU’s move and the desire to resolve the issue through dialogue.

China’s Response and Call for Dialogue

Lin Jian, porte-parole du ministère chinois des affaires étrangères, a déclaré : "Nous exhortons l'UE à écouter attentivement les voix objectives et rationnelles de tous les horizons, à corriger immédiatement ses mauvaises pratiques, à cesser de politiser les questions économiques et commerciales et à gérer correctement les frictions économiques et commerciales par le dialogue et la consultation".

La Chine fait valoir que les droits de douane ralentiront l'adoption des VE, compromettront les objectifs climatiques et augmenteront les coûts pour les consommateurs.

Marge de négociation

Despite the EU’s decision, there appears to be room for the two sides to continue discussions and find a solution.

Chinese state news agency Xinhua commented, “It is hoped the EU will make some serious reconsideration and stop going further in the wrong direction.”

The EU’s move comes shortly after the U.S. announced plans to quadruple duties on Chinese EVs to 100%.

Impact sur les constructeurs chinois de véhicules électriques

The EU will impose additional tariffs ranging from 17.4% for BYD to 38.1% for SAIC, on top of the standard 10% car duty. SAIC, China’s largest automaker, expressed deep concern over the tariffs. Geely also voiced disappointment and vowed to take necessary measures to protect its rights. However, Chinese EV maker stocks mostly shrugged off the news, with BYD’s Hong Kong-listed shares closing up 5.8%.

European Automakers’ Stance

Despite the influx of lower-cost EVs from Chinese rivals, there is virtually no support for tariffs from Europe’s auto industry. Major automakers like BMW, Volkswagen, Stellantis, and Mercedes Benz, which heavily rely on sales in China, fear retaliation from Beijing. Shares in some of Europe’s biggest carmakers fell for a second day due to concerns over China’s potential response.

The EU’s decision to impose tariffs on Chinese EVs has sparked strong opposition from China and other stakeholders. While China urges the EU to correct its “wrong practices” and engage in dialogue, there appears to be room for negotiation to avoid billions of dollars in new costs for Chinese EV makers. The impact of the tariffs on the global EV market and the potential for retaliation from China remain to be seen.

EVXL’s Take

The EU’s decision to impose tariffs on Chinese EVs highlights the growing tensions in the global EV market. While the move aims to protect European automakers, it risks slowing down the adoption of EVs and increasing costs for consumers. As a pro-drone publication, EVXL believes that open competition and collaboration are essential for driving innovation and making EVs more accessible to the masses. The potential for retaliation from China could also have far-reaching consequences beyond the auto industry, affecting sectors such as food and beverages. It is crucial for the EU and China to engage in constructive dialogue and find a solution that benefits all stakeholders and supports the growth of the EV market.