China explodes against EU tariffs on its electric cars: "It is an act of protectionism"

China called Thursday “flagrant act of protectionism” the European Union’s decision to increase tariffs on its electric vehicles.

The European Comissionthe EU’s executive arm, said it would impose provisional tariffs of up to 38% starting next month, up from the current level of 10%, if talks with China do not lead to an effective solution.

The Chinese Ministry of Commerce denounced the measure this Thursday

“It will not only harm the legitimate rights and interests of the Chinese electric vehicle industry and disrupt the mutually beneficial cooperation between China and Europe in new energy vehicles, but will also distort the global automotive industry and supply chains, including those in the EU,” the Minister of Commerce Chinese.

“It is a blatant act of protectionism,” he added. The European Commission stated that an investigation opened last year into Chinese subsidies for electric vehicles found that the value chain of such production “benefits from unfair aidwhich is causing a threat to EU producers.”

Additional fees would vary by company

The company BYD would face an additional rate of 17.4%. The manufacturer Geely, owner of the Swedish Volvo, would have to pay 20% more. In the case of SAICit would be an additional 38.1%.

The Chinese Government assures that they reserve the right to present the case to the World Trade Organization and will take “all necessary measures to safeguard the rights and legitimate interests of Chinese companies“.

The United States imposed tariffs last month

The president of United States, Joe Bidenlast month imposed significant new tariffs on Chinese electric vehicles, advanced batteries, solar cells, steel, aluminum and medical equipment.

Biden stated that subsidies from the Chinese government guarantee that companies in the country do not have to make profits, which gives them an unfair advantage in world trade.

An increasingly intense trade war

Analysts warn that it could explode an increasingly intense trade warwhich would raise prices for consumers and harm exporters and their workers on both sides.

Both are important markets for each other: China, a rising economy of more than a billion people, and Europe, with its relatively well-off population of more than 400 million.

“It’s like seeing a traffic accident in slow motion“, declared Jens Eskelund, president of the European Chamber of Commerce in China at the beginning of the year. “The accident has not yet occurred and it is still possible to find a way out. “It’s becoming urgent.”

China issued a warning in January, launching an anti-dumping investigation into European brandy exports, including French cognac. France was one of the main supporters of lto investigation of the European Union which led to Wednesday’s announcement of tariffs on electric vehicles.

The EU is also investigating subsidies given to Chinese wind and solar energy companies and whether China unfairly restricts access to the health products marketa long-standing complaint of European manufacturers.