Senior Chinese official to visit EU days after electric vehicle tariffs raise trade war risk

“China and the EU share extensive common interests and a broad space for cooperation in green development and have maintained good dialogue and cooperation.”

Beijing vowed to hit back after the European Commission said on Wednesday it would impose extra duties ranging from 17.4 per cent to 38.1 per cent on imported EVs made in China from July 4.

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Chinese-made electric vehicles face additional EU import tariffs of up to 38%

Chinese-made electric vehicles face additional EU import tariffs of up to 38%

The EU is also conducting anti-subsidy investigations into Chinese solar panel and wind turbine manufacturers.

In an article published on Thursday via its social media channel, China’s National Development and Reform Commission hinted that its retaliation may target fuel-powered “large-displacement” vehicles from the EU.

The commission, China’s top economic planning agency, said imports of these vehicles from the EU and other countries account for around 80 per cent of domestic sales.

“If the EU is bent on abusing protectionist measures and insisting on creating and escalating trade frictions, China will never stand idly by and will take all necessary measures to safeguard its legitimate rights and interests,” the article said.

Yuyuan Tantian, a social media channel affiliated with state broadcaster CCTV, said firms such as BMW and Mercedes-Benz would be the first to be hit by the move.

The channel also said China is expected to announce a preliminary ruling on an anti-dumping investigation on imported European brandy by the end of August.

The investigation, launched by the commerce ministry in January, would primarily hit French cognac exports.

The ministry also said on Thursday that it reserves the right to raise the EU’s “illegal and protectionist” tariffs on Chinese EVs at the World Trade Organization.

Chinese firms have also applied for an anti-dumping probe into pork imports from the EU, according to Global Times, a newspaper owned by the party mouthpiece People’s Daily.

The commerce ministry said domestic industries have the right to file such applications, but did not confirm whether it had received one.

Ding’s visit will include talks with Maros Sefcovic, the European Commission vice-president responsible for the EU’s environmental policy.