Beijing hopes that the European Union will reconsider imposing tariffs on Chinese electric vehicles and avoid further actions that could protect its auto industry from competition, as reported by state news agency Xinhua.
The response from China, along with European and Chinese car manufacturers involved in the dispute, signals strong opposition to the EU's decision and a desire to ease tensions.
Industry insiders suggest both Europe and China have incentives to reach an agreement in the coming months to prevent significant additional costs for Chinese electric car makers, given the ongoing review process within the EU.
China stated it would take measures to protect its interests after the European Commission announced plans to impose additional tariffs of up to 38.1% on imported Chinese electric cars starting July.
Xinhua commented that, given their economic scale and structure, China and the EU would benefit from cooperation on major economic and trade issues, urging the EU to reconsider its stance.
The EU's move follows similar actions by the United States, which recently announced plans to increase tariffs on Chinese electric vehicles to 100%.
Brussels indicated there is room for continued consultations with China to find a resolution and avoid escalating tensions further, according to Xinhua.
Beijing rejects arguments from the EU and the US that China's electric vehicle industry, supported by subsidies, poses a threat to foreign automakers through overcapacity, warning that tariffs could hinder electric vehicle adoption and raise costs for consumers, jeopardizing climate goals.
The EU's provisional tariffs, set to take effect by July 4, aim to address alleged Chinese subsidies and could remain in place for up to five years following further investigation.
Stocks of Chinese EV makers showed mixed reactions, with BYD's Hong Kong-listed shares rising more than 7% in early trading, while SAIC Motor's shares in Shanghai fell 2.3%, reflecting market anticipation and impacts on individual companies.
Analysts point out that Chinese automakers may need to pass some cost increases to consumers but do not foresee a severe impact on the overall Chinese EV industry in Europe.
European automakers, heavily reliant on the Chinese market, have voiced concerns over potential retaliatory measures from Beijing, while opposing tariffs that could affect their competitiveness against lower-cost Chinese electric vehicles.
Shares of major European automakers, including BMW, Volkswagen, Stellantis, and Mercedes Benz, declined amid fears of broader trade tensions and their implications for business in China.
Paraphrasing text from "Reuters" all rights reserved by the original author.
