China's SAIC Motor opposes "artificially setting up trade barriers"

BEIJING, Aug. 21 (Xinhua) -- SAIC Motor, a major Chinese carmaker, said it will take further legal action to defend its rights and interests if necessary as the European Commission will make the final ruling regarding tariffs on Chinese electric vehicle (EV) manufacturers before Oct. 30.

Last month, the European Commission imposed provisional tariffs of up to 37.6 percent on Chinese EV makers, following the launch of an anti-subsidy probe into Chinese EVs in October 2023.

On Tuesday, the commission released a draft plan proposing to make the tariffs definitive, with slightly revised rates pending approval by EU member states. Under the revised plan, SAIC Motor would face a 36.3 percent tariff.

In response, SAIC Motor said in a statement issued Wednesday that the European Commission's decision violates market economy principles and international trade rules, severely harming the interests of all parties involved.

The automaker voiced its opposition to "artificially setting up trade barriers" and called for safeguarding a level playing field.

SAIC Motor said that external pressures from Europe and the United States, among other factors, have caused short-term fluctuations in its overall sales this year, adding that the company is committed to overcoming these setbacks and aims to achieve consecutive month-on-month sales growth.

On Tuesday, a spokesperson for the Ministry of Commerce stated that China opposes the European Commission's plan to impose import duties of up to 36.3 percent on Chinese EVs and will take all necessary measures to defend the legitimate rights and interests of Chinese enterprises.

The commission's anti-subsidy investigation process on Chinese EVs did not comply with the World Trade Organization rules and was an act of "unfair competition" under the guise of "fair competition," according to the spokesperson.

Some foreign car manufacturers and parts suppliers have also voiced their opposition.

Countervailing duties are generally not suitable for strengthening the competitiveness of the European automotive industry in the long term and "we reject them," Volkswagen Group noted in a statement.

The timing of the European Commission's decision is detrimental to the current weak demand for battery vehicles in Germany and Europe, and the negative effects of this decision outweigh any potential benefits for the European and especially the German automotive industry, the statement read.

Speaking to Xinhua about the recent EU tariffs on China-made EVs, Philipp Schramm, CEO and CFO of Brose Group, an automotive parts manufacturing company in Germany, said that increasing trade tariffs and barriers undoubtedly violates global free trade norms.

Tariffs are not supporting technological advances because they are not fostering the ingenuity of individuals or teams working together globally, Schramm added.

"The decision is going a total wrong direction from my point of view," said Sven O. Otten, general manager of Tünkers (Jiangsu) Automation Technology Co., Ltd.

Meanwhile, Chinese experts have highlighted the long-term fallout of the tariffs.

European domestic manufacturers may gain a short-term advantage, but in the long run, rising prices and reduced options in the market could lead to a decline in overall demand, which would be detrimental to the healthy development of the entire EV industry, said Zhang Bin, professor at School of Business, Soochow University.

Ding Chun, director of the European affairs research center at Shanghai-based Fudan University, explored the motivations behind the EU's imposition of tariffs, attributing it to Europe's "anxiety" over Chinese EVs. He noted that China's EV industry has a clear comparative advantage over Europe's, and the fuel vehicle industry in Europe which involves a significant number of employees and voters, though declining, still holds sway.

With approximately 12 to 13 million people in Europe employed in the automotive industry, the EU appears willing to sacrifice environmental interests to repeatedly obstruct Chinese EVs, Ding said.