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Chinese automakers urge Beijing to raise tariffs on imported European gasoline cars Retaliation against Brussels’ restrictions on Chinese electric vehicle exportsThe state-run Global Times reported on Wednesday.
Chinese authorities hinted at retaliation after the European Commission announced it would impose anti-subsidy tariffs of up to 38.1% on imported electric vehicles, Reuters reported.
At a closed-door meeting on June 18, China’s auto industryCalls on the government to take resolute countermeasures (and) recommends actively considering increasing temporary tariffs on large-displacement gasoline vehicles”, it was reported.
The meeting was hosted by China’s Ministry of Commerce in Beijing and was attended by SAIC Motor and BYD. European automakers Volkswagen Group, BMW, Mercedes-Benz, Stellantis, Renault and Porsche also attended the event, according to Automotive News Europe.
The main purpose of the meeting was to put pressure on Europe to review its decision to impose tariffs on Chinese pure electric vehicles imported into the EU.
Industry insiders say both Europe and China have reason to hope a deal can be reached in the coming months to ease tensions and avoid billions of dollars in new costs for Chinese electric car makers as a result of EU procedures to allow for reviews.
The European Commission said on June 19 that it was reviewing the situation.In the hope of finding a solution acceptable to both parties.».
As Chinese companies try to boost overseas sales amid sluggish demand at home, there are concerns that China’s growth model could flood the 27-member European Union with cheap goods, including electric cars, whose trade policy has become increasingly protectionist.
Following the United States’ imposition of tariffs on Chinese cars in May, the European Commission announced on June 12 that it would impose anti-subsidy duties of up to 38.1% on Chinese imports of electric vehicles from July, opening up a new front in the West’s trade war with Beijing.
The Global Times first reported late last month that a Chinese government-linked auto research center had proposed that China raise import tariffs on gasoline sedans and SUVs with a displacement of more than 2.5 liters to 25% from the current 15%.
The newspaper also suggested last month that Chinese companies planned to ask authorities to launch an anti-dumping investigation into European pork products, which China’s Ministry of Commerce said on Monday it would take over. It also urged Beijing to review EU dairy imports, Automotive News Europe reported.
Data from the China Passenger Car Association shows that in 2023, Europe exported a total of 196,000 passenger cars with a displacement of more than 2.5 liters to China, an increase of 11% year-on-year.
In the first four months of 2024, Europe exported 44,000 such vehicles to China, a year-on-year decrease of 12%.
Data from the European Statistical Office showed that the EU’s automobile exports to China reached 19.4 billion euros in 2023, while the EU purchased 9.7 billion euros of electric vehicles from China.
China accounts for about 30% of German automakers’ sales, and Germany is by far the largest exporter of cars with engines of 2.5 liters and above, having shipped $1.2 billion worth of cars to China since the beginning of the year, according to Automotive News Europe.
The Mercedes-Benz GLE-class large SUV, S-class sedan and Porsche Cayenne are the three most popular imports from Europe to China, with these cars accounting for more than a fifth of the total 155,841 European-branded car imports in the first five months of this year, according to data from China Merchants Bank International.
Slovakia is China’s fourth-largest supplier of large-engine vehicles, exporting $803 million worth of SUVs to the EU this year.
The United States, Britain and Japan also export large volumes of cars with engines larger than 2.5 liters and are likely to benefit most from the proposed tariff increase.
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