Jakarta, CNBC Indonesia – China has opened its voice regarding the European Union (EU)'s move to impose high taxes on electric vehicles (EV) from that country. According to Beijing, this is a wrong step.
Official government media, Xinhua, said that Europe should reconsider this step. According to him, as two major economic powers, trade cooperation is something that is needed to develop world trade.
“Given the economic structure and size of these countries, China and the EU will best benefit from cooperating on major economic and trade issues,” Xinhua said in its comments quoted ReutersThursday (13/6/2024)
“It is hoped that the EU will carry out serious reconsideration and stop going further in the wrong direction,” he said.
This statement itself is in line with what was conveyed by Chinese Foreign Ministry spokesperson Lin Jian. Lin said this move would backfire on Europe itself.
“We urge the EU side to honor its commitment to support free trade and oppose protectionism, and work with China to uphold the overall interests of China-EU economic and trade cooperation,” he said.
“China will take all necessary measures to resolutely safeguard its legitimate rights and interests,” he said.
Earlier, on Wednesday, the EU said it would officially impose tariffs of 38.1% on battery electric vehicle (BEV) manufacturers who did not cooperate with Europe's trade investigation. If they are willing to comply with the wishes of the continent, then the applicable tariff will be lower, namely 21%.
It should be noted that the EU has always considered Chinese EV products to have benefited greatly from unfair subsidies. This poses a threat of economic loss for electric vehicle manufacturers in Europe.
“It is in the EU's interest to impose temporary countervailing duties on BEV imports from China,” read the statement quoted by CNN International.
In detail, the EU indicated that this was the result of an investigation that began in October. The tariffs are currently temporary, but will take effect from July 4 if talks with Chinese authorities do not produce results in reaching a resolution.
“Definitive action will be taken within four months of the introduction of the temporary duties,” the EU Commission said in a statement.
“The influx of subsidized Chinese imports at very low prices presents a clear and imminent threat of harm to EU industry,” he added.
The EU itself has imposed tariffs of 38.1% on the automotive company SAIC. China's main EV maker BYD imposed tariffs of 17.4% and Geely imposed import duties of 20%.
The three Chinese giants are currently included in ongoing EU discussions. However, there has been no further confirmation regarding Elon Musk's Tesla, which also has a giant factory in Shanghai.
[Gambas:Video CNBC]
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