A Chinese industry body representing 12 automakers has argued that the European Union’s tariffs on electric vehicles (EVs) built in China violate global trading rules. During a hearing with the European Commission, the China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCME) stated that the EU’s preliminary assessment conflicts with EU and World Trade Organization (WTO) regulations.
“We are very concerned. We urge the Commission to correct these unlawful findings and terminate the investigation (into Chinese EV subsidies),” CCCME Vice President Shi Yonghong told reporters on Friday.
Earlier in July, the EU imposed provisional tariffs ranging from 17.4% to 37.6% on EVs manufactured in China, including those by Chinese brands BYD, Geely, and SAIC, as well as models produced in China by Western companies such as Tesla and BMW.
Shi contended that domestic producers maintained a stable share of the EU market, indicating no immediate threat. He further claimed that EU industry losses were not attributable to imports and criticized the investigation’s lack of transparency and procedural inconsistencies.
The European Commission, which administers EU trade policy, will continue its investigation until the end of October. It insists that the measures are necessary to maintain fair competition. “Our investigation is fully in line with all relevant EU and WTO rules,” a Commission spokesperson stated.
Shi advocated for negotiations between Brussels and Beijing to find a balanced solution, though he noted a significant gap between the average EU provisional duty of 20.8% and China’s preference for no tariffs. “To reach middle ground, we’re talking about somewhere between zero and 20%,” he said.
Describing the average tariff as “unreasonable and inflated,” Shi warned that separate EU investigations into the impact of foreign subsidies might deter Chinese car and battery manufacturers from investing in Europe. “I think this is of great interest to (EU) member states because many member states are expecting investment from China,” he added.
EU member states will have the final say on the tariffs at the end of the investigation. A recent non-binding vote revealed divided opinions on the effectiveness of the tariffs.
