China does not accept EU tariffs, criticism of trade protectionism within Europe, and ongoing negotiations between China and Europe's technical teams

On the 29th local time, the European Commission announced the final ruling of its investigation into anti subsidy measures against Chinese electric vehicles, and decided to impose a maximum tariff of 35.3% on electric vehicles imported from China for a period of 5 years. The spokesperson of the Chinese Ministry of Commerce stated on the 30th that China does not agree with or accept the ruling result and has filed a lawsuit under the WTO dispute settlement mechanism. This tariff measure has caused division within the European Union. The German Association of Automobile Manufacturers warns that the EU's decision will not only increase the risk of trade conflicts with China, but also expose consumers to more expensive car prices. The development of electric vehicles in Europe and the achievement of climate goals may slow down at a "particularly critical stage". The German newspaper Bild described protectionist measures as building a wall to withstand strong winds, only to find that it blocked their view in the end. On the 29th, the European Commission also stated that the EU and China will continue to work hard to find alternative solutions that comply with WTO rules.

According to a press release on the website of the European Commission, the commission will impose countervailing duties on electric vehicles imported from China starting from October 30th. The sampled automobile manufacturers BYD, Geely, and SAIC Group were respectively subject to additional tariffs of 17%, 18.8%, and 35.3%. Other companies that cooperate with the investigation are subject to an additional tax rate of 20.7%, while companies that do not cooperate are subject to an additional tariff of 35.3%. After submitting individual review requests, Tesla was subject to an additional tax rate of 7.8%. The website of Radio France Internationale stated that this "surcharge" is levied on top of the already implemented 10% tariff. The news announcement shows that the temporary tariffs imposed on electric vehicles imported from China on July 4th this year will not be levied.

The Chinese side has repeatedly pointed out that the EU's anti subsidy investigation into electric vehicles in China has many unreasonable and non compliant aspects, and is a protectionist practice of "unfair competition" under the guise of "fair competition". The spokesperson of the Chinese Ministry of Commerce stated on the 30th that China will continue to take all necessary measures to resolutely safeguard the legitimate rights and interests of Chinese enterprises.

SAIC Group issued a statement on the 30th expressing deep regret over the final ruling of the European Commission. The company intends to take necessary legal measures to sue this case to the European Court of Justice and safeguard its legitimate rights and interests.

There are obvious internal differences within the European Union on the issue of imposing tariffs on electric vehicles from China. According to Reuters on the 29th, as the largest economy and major automobile producer in the European Union, Germany opposed the imposition of tariffs in this month's vote. On the 29th, a spokesperson for the German Ministry of Economy stated that Germany supports the ongoing negotiations between the European Union and China and hopes to ease trade tensions through diplomatic channels. Germany is committed to maintaining market openness, and as a globally interconnected economy, Germany relies on it.

Reuters reported that the German automotive industry has strongly criticized the measures taken by the European Union. According to Agence France Presse on the 30th, the President of the German Association of the Automotive Industry (VDA), M ü ller, warned that the EU's decision will increase the risk of a "far-reaching trade conflict," "a setback for global free trade, and will also lead to a decline in European prosperity, employment security, and economic growth.

On the 29th, the German newspaper Bild reported that VDA stated: "If energy prices here are three to four times higher than in the United States or China, if bureaucracy always wastes our time and money, if we continue to lack competitiveness on tax issues... this will not work. In the future, more and more job opportunities will appear in other countries." Agence France Presse said that BMW Group Chairman Zipser stated in a statement that the EU's measures will "harm the business models of companies active around the world, restrict the supply of electric vehicles to European customers, and slow down the decarbonization process in the transportation sector.

According to Bloomberg on the 29th, major German car manufacturers are concerned that the trade dispute between the European Union and China may harm their business in China. According to Bild, Volkswagen, BMW, and Mercedes Benz sell over one-third of their cars to China. Once sales in China decline, it means they may face financial constraints and the risk of layoffs. Deutsche Welle mentioned in its report that Volkswagen has recently encountered difficulties. The company plans to close at least three factories in Germany and may lay off tens of thousands of employees.

On the 30th, Agence France Presse reported that there has been controversy over the EU imposing tariffs on electric vehicles imported from China. This measure did not receive the support of most of the 27 member states of the European Union. In the vote earlier this month, 10 countries supported the imposition of tariffs, 5 countries voted against it, and 12 countries abstained. But these opposing voices failed to prevent the implementation of tariffs, as at least 15 countries (representing 65% of the EU population) need to vote against the proposal in order to reject it.

According to Singapore's Lianhe Zaobao, Finnish President Stubb, who was visiting China, said in Beijing on the 29th that China and Europe need to avoid falling into a vicious circle of tariff escalation and trade disputes.

Expert: China and Europe may engage in a long-term game in the field of economy and trade

The spokesperson of the Chinese Ministry of Commerce said on the 30th that China has also noted that the European side has stated that it will continue to negotiate with China on price commitments. China has always advocated resolving trade disputes through dialogue and consultation, and has been making every effort to achieve this goal. At present, the technical teams of both sides are conducting a new stage of consultations, hoping that the European side will work together with the Chinese side in a constructive manner, take into account each other's core concerns in accordance with the principles of "pragmatism and balance", and reach a mutually acceptable solution as soon as possible to avoid the escalation of trade frictions.

The China Chamber of Commerce for Import and Export of Machinery and Electrical Products stated on the 30th that in the more than 20 days since September 20th, the China Europe technical team has conducted 8 rounds of intensive consultations in Brussels, made arduous efforts, and made important progress. However, the European side has not actively responded to core concerns related to the China Europe industry, and there are still significant differences between the two sides.

Huo Jianguo, Vice President of the China World Trade Organization Research Association, stated in an interview with Global Times on the 30th that China and Europe still seem willing to resolve issues through negotiations. At present, the unresolved points of disagreement may lie in the EU's desire for China to make greater commitments or concessions, while China firmly defends the legitimate interests of Chinese enterprises. Huo Jianguo further analyzed that if a new solution is formed through negotiations between the two parties in the future, from a technical perspective, the existing operation will be terminated. But if the problem cannot be resolved through negotiations, China will definitely take countermeasures, which may lead to an expanded trade friction, and both sides will suffer losses without a winner.

Li Yong, a researcher at the China International Trade Association, told Global Times on the 30th that if Chinese automobile exports to Europe are negatively affected by high tariffs, Chinese companies will reassess their market investment strategies in the EU and adjust their production efficiency and costs.

We should not rely on tariffs, but need to enhance the competitiveness of European car manufacturers through innovation and improving quality. Setting barriers is of no use. "The article in the" Bild "newspaper stated that the EU's imposition of tariffs aims to" protect "local industries, but it may ultimately backfire and carry huge risks. Some European car models produced in China will also be affected by the new tariffs, and ultimately the negative impact will be transmitted to consumers who need to pay more. We should do our best to avoid a trade war that does more harm than good. Free trade and open markets are the keys to economic success

Professor Cui Hongjian from the Institute of Regional and Global Governance at Beijing Foreign Studies University believes that the EU's measures to impose tariffs have political purposes. Now, with the rise of internal protectionist sentiment, the EU is attempting to establish new "rules" and "regulations" for future economic and trade relations with China. Next, China and Europe may experience a relatively long and difficult game of rules in the field of economy and trade.

Spain has opened its doors to China

The New York Times reported on the 30th that Europeans' concerns about the potential escalation of the trade dispute between the European Union and China are "obvious". Agence France Presse reported that on the 8th of this month, the Chinese Ministry of Commerce announced temporary anti-dumping measures against imported brandy originating from the European Union. Some European media have linked China's move to the EU's imposition of tariffs on electric vehicles from China.

European news channel reported that French cognac producers are feeling "anxious and frustrated" about the French government's support for the EU's imposition of tariffs on electric vehicles imported from China. The head of an industry group said, "We have been completely sacrificed, but there is still hope for the situation to be salvaged. We call on the government to find a solution and engage more closely with China to see what can be discussed

Foreign media also noted that amidst the trade friction between the EU and China, some EU member states are still committed to expanding cooperation with China. The New York Times published an article on the 30th stating that "Spain has opened its doors to China": this year, the government of the Catalan Autonomous Region in the country has set up a department specifically to strengthen investment and trade with China; The Port of Barcelona has approved the construction of infrastructure with direct access to the port railway for transporting electric vehicles exported from China to Europe; Last month, during Spanish Prime Minister Sanchez's visit to China, an investment project for a green hydrogen energy industrial park was reached with the Chinese side. Spanish Minister of Economy, Trade and Enterprise, Quilpa, said that China is an important economic partner of the European Union and Spain. For key industries such as automobiles, Quilpa believes that 'Spain needs to conduct its own analysis'. Spain abstained from the vote on the EU's imposition of tariffs on electric vehicles from China.