China calls EU tariffs on EVs unfair, says it will take necessary measures to defend industry

The Chinese government on Wednesday hit out at the European Union over tariffs on electric vehicle imports, after the bloc lowered duties on several major electric automakers, including Tesla.

A Ministry of Commerce spokesperson told reporters that Beijing continues to believe that the EU’s probe into China’s subsidies for its electric vehicle industry have come to “pre-set conclusions,” adding that the bloc is promoting unfair competition.

“China will take all necessary measures to resolutely defend the legitimate rights and interests of Chinese companies,” the Ministry of Commerce spokesperson said, according to a Google translation.

On Tuesday, the European Commission, the EU’s executive body, lowered import duties on a number of electric vehicle manufacturers importing cars into the EU from China.

It also set tariffs on Elon Musk’s electric vehicle maker Tesla at 9%, below a previously anticipated 20.8% rate.

These tariffs come on top of existing EU duties of 10% on battery electric vehicles imported into the region from China.

The Commission also lowered tariffs on several Chinese electric car makers, including BYD, SAIC, and Geely.

The tariffs, first announced by the EU in June, come in response to concerns from the bloc that generous subsidies of China’s electric vehicle industry are distorting competition in Europe.

In response to the move, the Chinese Commerce Ministry said that both the government and China’s EV industry provided “tens of thousands of pages of legal documents and evidence materials through various means such as submitting questionnaires, written comments, and hearing statements.”

These documents, the Ministry said, “have comprehensively and deeply defended the unreasonable and non-compliant practices of the EU,” and highlighted how EU tariffs “will disrupt the stability of the global automotive industry chain supply chain including the EU.”

The EU’s final ruling, the Ministry said, “did not fully absorb China’s opinions” and was “based on the ‘facts’ unilaterally identified by the EU, rather than the facts recognized by both parties.”

“China firmly opposes and is highly concerned about this,” the Ministry said.

It added that it hopes to resolve any trade disputes with the EU and to take practical actions to avoid an escalation of trade frictions.