Industry insiders criticize EU's planned tariffs on imported Chinese EVs

BRUSSELS, Aug. 22 (Xinhua) -- The European Union's planned tariffs on electric vehicles (EVs) imported from China have drawn criticism from industry insiders, who warned that the protectionist measures could exacerbate trade tensions between the two sides and send a negative signal to global cooperation and green development.

The European Commission released on Tuesday its draft decision to impose definitive countervailing duties on imports of EVs from China, ranging from 17 percent to 36.3 percent, which is subject to approval by EU member states at the end of this month.

The move came after the commission imposed provisional additional tariffs on Chinese EV makers in July, following its anti-subsidy probe on Chinese EVs launched in October 2023.

The China Chamber of Commerce to the EU (CCCEU) strongly criticized the EU's protectionist stance, expressing "deep dissatisfaction."

The Brussels-based business group argued there is insufficient evidence to prove that Chinese EVs cause substantial material injury to the EU market, noting the allegation of "threat of injury" used by the EU to justify imposing these trade measures is "contrary to fair trade principles and unacceptable to the industry."

The tariffs are "not based on proven facts," but on assertions to justify them, said Ferdinand Dudenhoeffer, director of the Center for Automotive Research in Bochum, Germany.

"The European Commission's unfair use of trade tools to hinder free trade in electric vehicles, along with this protectionist approach, will ultimately weaken the resilience of the European electric vehicle industry, disrupt the level playing field, and undermine the EU's own green transition," the CCCEU said in a statement.

"Moreover, it will exacerbate trade tensions between China and the EU, sending a profoundly negative signal to global cooperation and green development," it added.

Echoing these concerns, Hrvoje Prpic, president of the Croatian EV Drivers Association, said the EU tariffs on Chinese EVs are "not helpful" and "not beneficial" for European manufacturers who are struggling to keep pace with the rapidly developing EV industry.

Prpic noted it is the European consumers who would bear the cost as the tariffs would make the Chinese EVs much more expensive.

"The end users are the ones who will have to eventually pay for it," he said, adding that it is "definitely not good" for the whole European market.

The CCCEU urged the EU to promote free trade, respect globalization, and support the global green transition by canceling the countervailing duties on Chinese-manufactured EVs.

"This action would encourage mutual benefit, strengthen the collaborative development of the automotive industry chain between China and Europe, and boost green trade. It would also contribute meaningfully to global efforts to combat climate change," the CCCEU said.

China's Ministry of Commerce also condemned the EU's tariffs on Tuesday, stating that the country would take all necessary measures to protect the legitimate rights and interests of Chinese enterprises.

The ministry emphasized that more than 10 rounds of technical consultations have been held since late June, urging the EU to take practical steps to prevent the escalation of trade disputes.

Earlier this month, China filed an appeal with the World Trade Organization, challenging the EU's imposition of provisional additional tariffs on Chinese electric vehicles.