In the exchange of blows between China, the EU and the USA, Beijing is firing another warning shot on trade policy. This time it is about car imports. German manufacturers could also be affected.
China continues to target foreign car manufacturers with regard to possible import tariffs. The Ministry of Commerce invited experts, industry associations and industry representatives to gather opinions and suggestions on increasing tariffs on imported combustion-engine cars with large engines, the authority in Beijing announced. The ministry did not provide any further details about the participants or results of the meeting.
China is thus pushing forward another possible countermeasure after the EU recently adjusted its information on additional tariffs on electric cars from the People’s Republic, much to Beijing’s annoyance. According to the EU Commission, Chinese subsidies on electric cars from the Far East are leading to a market distortion in the European Union.
First warning in May
Back in May, the Chinese Chamber of Commerce in Brussels had warned of a tariff increase on cars imported into China in response to the additional tariffs that were still looming at the time. At the time, citing “insiders”, it was said that the vehicles in question could be subject to a 25 percent tax.
This possible measure would have “an impact on European and US car manufacturers, particularly in light of recent developments,” the chamber said at the time. German car manufacturers would also be noticeably affected by import tariffs.
The USA had already imposed high punitive tariffs on Chinese electric cars. In the EU, it is still unclear whether the punitive tariffs will actually be imposed. The Commission must put the decision to a vote among the 27 EU states. There should be clarity by the end of October.
China sharply criticized the move and accused the EU of, among other things, protectionism and violating the interests of consumers in Europe. At the same time, China is already examining goods imported from the EU in anti-subsidy investigations. These include spirits, pork and certain dairy products.
Source: Stern
