The National Development and Reform Commission Photo: VCG

 
China's National Development and Reform Commission (NDRC), the top economic planner, recently published three opinion pieces on the EU decision to impose extra tariffs on Chinese electric vehicles (EVs), while urging the EU to scrap the protectionist and unwelcome levies.

The three articles posted on the WeChat account of the NDRC on Thursday and Friday, called on the EU to act with discretion and correct its mistake. The articles gave a deep analysis that the EU's move will only backfire, risk escalating trade friction and undermine the bloc's pursuit of green development.

The response came after the European Commission (EC) announced on Wednesday a decision to impose an additional provisional duty of between 17.4 percent and 38.1 percent on EVs imported from China from next month.

The last time the NDRC published a triple outburst of opinion pieces was in May, criticizing the US for levying hefty tariffs on Chinese green products.

Following the tariff announcement, European officials said they wouldn't rule out a negotiated agreement with China, before the duties become permanent in November.

Observers said that the discourse by the top Chinese economic planner, which thoroughly examined the pros and cons of imposing the tariffs from the perspective of the EU, is aimed at bringing the EU back to the rational track of resolving disputes through dialogue and talks, but could also be reflective of the Chinese tradition of being polite before retaliating, experts said. 

Lü Xiang, a research fellow at the Chinese Academy of Social Sciences, told the Global Times on Sunday that the EC investigation of the Chinese EV sector echoed efforts by Washington to stymie the development of China's burgeoning green industry by mounting import duties to block entry of high-quality Chinese EVs.

"Now the imposition [of tariffs] is not final, and the Chinese side may want to give the EU side some time to explain its tariff decisions, as well as time for the EU to rectify its wrongdoings," Lü said.

The NDRC essays pointed out that the rapid development of the Chinese EV industry derives from openness and free competition, and the EU should immediately correct its wrongdoings and come back to the rational track of resolving disputes through dialogue and consultations.

The opinion pieces noted that the EC's probe was unjust by evidence of playing double standards and "presumption of guilt" and the extra-tariffs decision is short-sighted because it overlooks the ineffectiveness of protectionist policies in ramping up competitiveness. In 2023, the EVs imported from China helped reduce carbon dioxide emissions by 498,000 tons and contributed to the EU's green transition.

The essays noted that one-third of global automotive sales were done in China, and European auto brands like Volkswagen, Audi, Mercedes-Benz and BMW realized more than 30 percent of their business revenues in the Chinese market.

Wan Zhe, an economist and professor at the Belt and Road School of Beijing Normal University, told the Global Times on Sunday that the NDRC's response was fact-based and clearly spelt out what is at stake for the EU.

"It shows that China still hopes the two economic partners, vital pillars of the global economy, can move in the same direction and refrain from adding extra political and economic hurdles or be blindfolded by the zero-sum mentality in handling bilateral trade disputes," Wan said.

"The global economic recovery and global supply chains are rather fragile now, and the EU should see the significance of the vast potential of the Chinese market for European companies," Wan said.

"No one wants to see lose-lose situation, and cooperation between China and the EU is the only path to win-win outcomes," the expert noted.

But if the EU clings obstinately to its course down the protectionist path, turning a deaf ear to the rational voices within the EU, and jeopardizes the interests of itself and those of China, and be blatant in blocking Chinese goods to Europe, the Chinese side has an ample toolkit for taking countermeasures," Lü noted.

Lü also warned of a dangerous tendency in the EU, in which the European political organs like the EC make decisions, regardless of the interests of its member countries.

The response from the NDRC came as many Chinese government departments and business chambers expressed strong opposition to the extra tariffs.

The Foreign Ministry and Commerce Ministry said China will closely monitor developments in the EU, vowing "necessary measures" to firmly defend the legitimate rights and interests of Chinese companies.

According to industry insiders, China is internally moving ahead with a procedure to raise provisionary tariff rates on imported cars with large-displacement engines, Yuyuantantian, a social media account under the China Media Group, reported on Thursday.

"China and the EU share extensive common interests and broad space for cooperation in green development… We look forward to deepening our green partnership with the EU and making green the most distinctive color of China-EU cooperation," Foreign Ministry spokesperson Lin Jian told a regular press briefing on Friday.