China “does not recognize nor accept” the EU's final ruling on the anti-subsidy investigation into China-made electric vehicles (EVs), a Spokesperson for the Ministry of Commerce (MOFCOM) said. “We have noted that the tariff rates in the final ruling have been adjusted from the rates in the preliminary ruling in July, but the European side has not fundamentally changed its wrong approach. The ruling is not in line with World Trade Organization (WTO) rules and fails to address the core concerns of Chinese and European businesses,” MOFCOM Spokesperson He Yadong said. The EU has followed many unreasonable and non-compliant practices in the anti-subsidy investigation of China-made EVs. China has always put forward a comprehensive defense and submitted a large number of comments and evidential materials to the EU, which have not been fully considered, He stressed.
Regarding reports saying that China has advised Chinese car companies to suspend business expansion and investment plans in Europe, He noted that China has always supported and encouraged mutually beneficial and normal economic, trade and investment cooperation in the automotive industry with Europe. “China consistently adopts an open and cooperative attitude, adheres to a market-oriented approach, bases itself on full competition, and cooperates with relevant countries in the EV industry through trade, investment and technology, and jointly maintains the stability of the global automotive industry and supply chains,” said He. “China is also committed to the green and low-carbon transformation and jointly addressing climate change,” he added. The Chinese business community, especially the EV industry, is highly concerned about the EU's tariff ruling, and it has expressed deep regret and firm opposition to the final ruling issued by the EU, Sun Xiao, Spokesperson for the China Council for the Promotion of International Trade (CCPIT) added.
According to the EU's final ruling, Shanghai-based carmaker SAIC Motor Corp faces 35.3% additional tariffs on top of the existing 10%, Geely Automobile Holdings faces an additional 18.8%, and BYD Co 17%. For Tesla, which cut a side deal with the European Commission, the rate is 7.8%. Other Chinese EV makers face an average duty of 20.7%, with a maximum of 35.3% for those deemed “non-cooperative”. The EU's punitive tariffs on Chinese EVs are another hit to Europe's competitiveness, said Hungarian Foreign Minister Péter Szijjártó in Budapest, emphasizing that the measure doesn't serve the interests of EU nations or companies, the Global Times reports. China and the EU intend to continue the negotiations even after the tariffs have kicked in, but meanwhile China has lodged a complaint with the WTO.
