Workers complete assembling an electric vehicle (EV) at China's EV start-up Leapmotor in Jinhua, East China's Zhejiang Province on April 1, 2024. The smart EV factory delivered 14,567 new vehicles in March, a yearly increase of 136 percent. Photo: VCG

China will resolutely take all necessary measures to protect the legitimate rights and interests of Chinese electric vehicle (EV) industry and enterprises, the Foreign Ministry said on Thursday, in response to the EU's decision to impose extra tariffs on Chinese-made EVs.

"China has principles that must be defended -- those are WTO rules and market principles. China also has interests that must be safeguarded, which are the legitimate rights and interests of China's EV industry and enterprises. To this end, we will resolutely take all necessary measures," said Lin Jian, a Foreign Ministry spokesperson.

Lin made the remarks when asked if China will launch countermeasures against EU's latest decision to impose additional tariffs on Chinese EVs.

In a related development, China's Commerce Ministry said on Thursday that it reserves the right to file a lawsuit with the WTO over EU's decision to impose additional punitive tariffs on Chinese EVs.

The EU announced on Wednesday that it will be implementing a provisional duty on electric vehicles imported from China, ranging from 17.4 to 38.1 percent starting in early July. This decision comes despite objections from EU member countries including Germany, Sweden and Hungary.

After the announcement, many European carmakers on Wednesday expressed opposition to the move, saying the protectionist move will only harm the European auto industry. German carmaker Mercedes-Benz said that it always supports liberal trade based on WTO rules. 

"If a general trend towards protectionism gains a foothold, this has negative economic consequences for all stakeholders involved," the company said in a statement sent to the Global Times on Wednesday.

"Countervailing duties are generally not suitable for strengthening the competitiveness of the European automotive industry in the long term - we reject them," read a statement from Volkswagen Group on Wednesday.

SAIC Motor, the company which will be subject to an additional tariff of 38.1 percent, said on Thursday that it has expressed deep concern and regret over the EU's recent decision to impose extra tariffs on Chinese EVs. 

SAIC urged the EU to reconsider its decision, stressing the need for fair competition and global cooperation to advance sustainable development.

Chinese ministries, industry bodies and business groups on Wednesday rebuked EU's decision and vowed to take all necessary measures to defend the interests of Chinese companies.

The EU decision is a typical protectionist move that ignores facts, runs against WTO rules, and goes against the trend of history, said Lin Jian from the Foreign Ministry.

"We urge the EU to listen carefully to the objective and rational voices from all walks of life, immediately correct its wrong deed, stop politicizing economic and trade issues, properly handle economic and trade frictions through dialogue and consultation, and avoid damaging mutual trust and dialogue and cooperation between China and the EU," Lin said.

Global Times