European Union Tariffs Drive China to Weigh Import Duties on Large Petrol Vehicles
EU Tariffs and China’s Import Tariff Consideration
Chinese carmakers and industry associations have presented opinions and suggestions to commerce officials during a closed-door meeting on Friday, indicating that Beijing is evaluating the possibility of increasing import tariffs on large petrol-powered vehicles.
This potential increase is viewed as the latest retaliatory measure following the European Union's tariffs on Chinese-made electric vehicles (EVs). According to the ministry's official statement, officials have been attentive to feedback from industry experts regarding this matter.
Economic Context
Gary Ng, a senior economist at Natixis Corporate and Investment Bank, explained that this timing indicates a direct correlation with the EU tariff adjustments on made-in-China EVs.
- China may aim for a less disruptive product adjustment that impacts certain EU nations more than others, tailoring the import tax to focus on regional advantages.
- Earlier in June, a CCTV article highlighted discussions from a closed-door meeting in Brussels, where Chinese producers proposed new tariffs on European cars.
- Cui Fan, an academic, recommended a significant 25% tariff, claiming alignment with World Trade Organization (WTO) standards.
This dialogue surfaced shortly after the EU revised its provisional tariffs targeting leading Chinese EV brands.
Recent Developments and Impact on Trade
With China initiating an anti-subsidy investigation into EU dairy products, other commodities, including port and brandy, have also come under scrutiny by Chinese authorities.
- Chinese automotive imports fell by 10% year-on-year, including 196,000 large petrol-powered passenger cars from the EU.
- The value of large petrol vehicle imports rose by 3%, significantly exceeding the value of EV exports to Europe.
Europe remains a vital market for Chinese EVs, accounting for 38% of total exports last year. The EU’s revised tariff rates for Chinese EVs, which will be voted on in October, have raised concerns in Beijing, as these proposals diverge from China's expectations.
Trade Relations and Future Implications
The continuous use of trade defenses by both governments has led to a retaliatory trade dynamic, affecting exports, with a noted 15% decline in China’s EV exports to the EU in the first half of the year.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.