Illustration: Chen Xia/Global Times

The Chinese business community strongly opposes the US decision to further increase tariffs on Chinese products and urges the US to immediately cancel the additional tariffs, the China Council for the Promotion of International Trade (CCPIT) said on its official WeChat account on Wednesday.

On top of existing tariffs under Section 301, the US on Tuesday announced new tariffs on a variety of imports from China, including electric vehicles (EVs), lithium batteries, photovoltaic cells, critical minerals, semiconductors, steel and aluminum. In September 2020, a WTO panel ruled that the Section 301 tariffs violated WTO rules.

The CCPIT said that the tariff hike on imports from China is a typical example of unilateralism and trade protectionism. Meanwhile, the US' substantial subsidies to its EV and semiconductor industries have clearly violated market economy principles and international trade rules, severely disrupting global industrial chain and supply chain stability and security.

On behalf of the Chinese business community, the CCPIT urged the US to abide by the WTO rules, immediately cancel the additional tariffs and promote trust and cooperation between the business communities of the two countries.

Meanwhile, the China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCME) stated on Wednesday that China's export share of EVs and photovoltaic cells to the US is minimal. EVs comprise less than 1 percent, and photovoltaic cells only 0.2 percent of total exports in 2023. Therefore, the current US tariff increase is not expected to significantly impact these industries.

The tariffs are likely to raise market prices, burden consumers, and hinder global cooperation and innovation in the industry. Additionally, they will increase operational costs for US ports and logistics, as Chinese port lifting equipment will also be subject to tariffs.

CCCME emphasized that such actions by the US violate internationally recognized trade rules. Since the US initiated the 301 investigation in August 2017, CCCME has submitted comments to the Office of the US Trade Representative multiple times and organized delegations to participate in three public hearings in the US, urging the cessation of the 301 investigation and opposing US taxation measures on Chinese products.

China has vowed to take all necessary measures to protect its legitimate rights and interests against the additional US tariffs.

It is yet another mistake for the US to continue politicizing trade issues and further increasing tariffs on Chinese products, Chinese Foreign Ministry spokesperson Wang Wenbin told a regular press conference on Wednesday.

This will only significantly drive up the cost of imported goods, inflict more losses on American companies and consumers, and force US consumers to pay even more, Wang said.

Moody's has estimated that 92 percent of the cost of the tariff hike will fall on American consumers, and average US household expenditure will increase by $1,300 annually as a result. The US' protectionist measures will further damage the security and stability of the global industrial and supply chains, Wang noted.

The US tariff hike goes against the consensus reached by the leaders of the two countries and the promises of US President Joe Biden, and will seriously affect the atmosphere of bilateral cooperation, said China's Ministry of Commerce (MOFCOM).

MOFCOM also refuted the accusations of "overcapacity" in China by some Western politicians and media reports, stating that this is merely a disguise for unilateralism and trade protectionist policies.

It reiterated that there is no "overcapacity" in emerging industries such as EVs, adding that Chinese EV companies have developed rapidly through innovation and market competition, not subsidies.

Some countries claim to promote green development while practicing protectionism, and this will only hinder the global green transformation and damage confidence in climate cooperation, MOFCOM said.

Global Times