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‘Beijing knows where it hurts most’: China considers its response after EU tariff hike
- Possible countermeasures include bringing the case to the WTO or seeking deals to bypass the EU tariffs, experts say
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China has various trade tools that could be used as countermeasures to hit the European Union’s automobile, agriculture and luxury sectors in response to the bloc’s tariff hike, but it could also be wary of consequences on bilateral ties, according to analysts.
The EU announced on Wednesday that it will raise tariffs on Chinese EVs by up to 38 per cent from July 4 after a seven-month probe revealed some of the world’s leading EV makers had undercut European competitors with the help of vast subsidies from the state.
The measure will target all EV imports from China, including those from BYD, Geely and SAIC, which accounted for more than a quarter of EV sales to Europe.
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The Chinese ministry of commerce said it would use “all necessary measures”, including preserving the right to bring the case to the World Trade Organization (WTO), to defend the rights of Chinese enterprises, arguing that the EU’s “protectionism” will affect economic cooperation between China and Europe, whose relations are already strained amid geopolitical tensions.
In a statement on Wednesday, the China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCME) also said it will use “various means” to defend the EV makers, accusing the EU’s investigation of lacking transparency and having “serious flaws”.
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