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China hopes EU will reconsider EV tariffs, state media reports
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China hopes EU will reconsider EV tariffs, state media reports
Jun 12, 2024 5:58 PM

HONG KONG, June 13 (Reuters) - China hopes the European

Union will seriously reconsider tariffs for Chinese EVs and stop

going further in the "wrong direction", according to a

commentary in state-backed news Xinhua.

The statement comes after the European Commission said on

Wednesday it will impose extra duties of up to 38.1% on imported

Chinese electric cars from July.

China has said it would take measures to safeguard its

interests.

"In light of their economic structure and sheer size, China

and the EU are best served by teaming up on major economic and

trade issues," Xinhua said.

"It would be more cost-effective for the EU to draw on

China's advantages in order to develop its own EV industry."

Less than a month after Washington announced plans to

quadruple duties for Chinese EVs to 100%, Brussels said it would

combat excessive subsidies with additional tariffs ranging from

17.4% for BYD to 38.1% for SAIC, on top

of the standard 10% car duty.

The move comes as European automakers are being challenged

by an influx of lower-cost EVs from Chinese rivals. Still, there

is virtually no support for tariffs from the continent's auto

industry.

German automakers in particular are heavily dependent on

sales in China and fear retribution from Beijing. European auto

firms also import their own Chinese-made vehicles.

European Commission President Ursula von der Leyen has

repeatedly said Europe needs to act to prevent China from

flooding the bloc's market with subsidised EVs.

Trade and economic relations between the EU and China are at

an important crossroads, and it is crucial for the EU to

demonstrate a strategic and long-term vision, Xinhua said.

The regional bloc seemed to have left some room for the two

sides to continue their consultations to find a proper solution

and avoid the worst scenario, the commentary added.

"It is hoped the EU will make some serious reconsideration

and stop going further in the wrong direction."

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