The Ministry of Commerce Photo: VCG

China's Ministry of Commerce on Wednesday urged the EU to immediately correct its wrong practices and properly address economic and trade frictions through dialogue and consultation, and vowed to take all necessary measures to firmly defend the legitimate rights and interests of Chinese enterprises.

The ministry's remarks came after the European Commission (EC) announced that it would impose provisional duties on imports of Chinese  battery electric vehicles (BEVs)  of up to 38.1 percent. The EC, which oversees EU trade policy, said the tariffs, likely to be in place by July, would be 17.4 percent for BYD, 20 percent for Geely and 38.1 percent for SAIC, according to the commission's press release on Wednesday. 

Other BEV companies cooperating with the investigation would face a tariff of 21 percent and non-cooperating companies 38.1 percent, said the release.

In response, the MOFCOM said that the European side ignores the facts and WTO rules, ignores China's repeated strong objections, and disregards the appeals and discouragement of the governments and industries of many EU member states, which is a matter of great concern and strong dissatisfaction for the Chinese side.

The Chinese industrial sector is deeply disappointed with and resolutely opposed to the move, the MOFCOM said.

The findings in the disclosure of the European ruling lack a factual or legal basis. The EC ignores the objective fact that China's advantage in EVs comes from open competition, ignores WTO rules and ignores the full cooperation of the relevant Chinese enterprises in the relevant investigation. 

The EC deliberately constructs and exaggerates the so-called subsidy program, and the assumption of abnormally high subsidy margins is a blatant act of protectionism, creating and escalating trade friction, and "destroying fair competition" in the name of "safeguarding fair competition", which is the biggest "unfairness" of all, the MOFCOM noted. 

This move by the European side not only harms the legitimate rights and interests of China's EV industry, but will also disrupt and distort the global automotive industrial and supply chains, including the EU's, said the MOFCOM.

The EC is holding up the banner of green development with one hand and wielding the "protectionist" stick with the other, politicizing and weaponizing economic and trade issues, which is not in line with the spirit of the consensus of China-EU leaders on strengthening cooperation.

It will affect the atmosphere of China-EU bilateral economic and trade cooperation. The move is not conducive to the interests of EU consumers themselves, and will also jeopardize the green transformation of the EU itself and the overall situation of global cooperation on climate change, the MOFCOM further noted.


Global Times