The decision by the European Commission to move forward with tariffs on Chinese-made electric vehicles has sparked concerns about the potential impact on China-EU relations and climate change goals, according to Xinhua news agency on Saturday.
Despite Germany’s rejection of the tariffs, the EU announced its intention to impose hefty tariffs on China-made EVs, leading to the biggest trade dispute with Beijing in a decade.
Xinhua criticized the move as a “deep-seated protectionist impulse” that could harm cooperation and hinder Europe’s green transition efforts.
The agency urged for the abandonment of protectionist tariffs in favor of continued negotiations to resolve the issue.
The proposed tariffs on Chinese EVs, which could reach up to 45%, are expected to cost carmakers billions of extra dollars to import cars into the EU over the next five years.
The European Commission justified the tariffs as a response to what it considers unfair Chinese subsidies following an anti-subsidy investigation.
China’s Commerce Ministry strongly opposed the planned tariffs, labeling them as “unfair, non-compliant, and unreasonable” and has initiated a challenge at the World Trade Organization.
Beijing has responded with probes into imports of EU brandy, dairy, and pork products, seen as retaliatory measures. Meanwhile, the U.S. maintains a 100% duty on imported Chinese EVs.