The evolution of the trade war between China and the European Union makes the tagline “in the making” increasingly unnecessary. The regime presented a complaint to the World Trade Organization (WTO) this Wednesday after the community institutions redoubled the sanctions against its electric vehicles a day earlier.
The Chinese Ministry of Commerce has announced the measure through an official statement in which it claims to “neither agree nor accept” the verdict of the investigation concluded this Tuesday by the European Commission, which it considers “full of unreasonable aspects.” . This imposes tariffs of 35.5% on the Chinese automaker SAIC Motor, 18.8% on Geely, and 17% on BYD, in addition to the general 10%. These penalties come into effect today and will remain, a priori, for the next five years.
The process, which began in September of last year, shows a new European position, stronger in defending its interests. In the eyes of the Commission, China’s state aid to its electric car industry represents unfair competition that harms autonomous companies and lays the foundations for future dependence on the regime in this key sector. «Global markets are flooded with electric cars [chinos] cheaper and its price is kept artificially low by enormous state subsidies,” President Ursula von der Leyen denounced at the time.
“By adopting these proportionate and targeted measures after rigorous investigation, we are upholding fair market practices and the European industrial base.”said Valdis Dombrovskis, vice-president of the Commission and Commissioner for Trade, yesterday when confirming the new sanctions. The EU “welcomes competition, including in the electric vehicle sector, but it must be underpinned by fairness and a level playing field.”
“China will continue to take all necessary measures to firmly safeguard the legitimate rights and interests of Chinese companies,” added the Ministry of Commerce, also revealing “a new phase of consultations” already underway. “We hope that the European counterpart will engage with China in a constructive manner and reach a mutually acceptable solution as soon as possible to prevent trade frictions from escalating.”
The regime has so far employed a dual strategy, maintaining open negotiations while at the same time counterattacking with its own investigations into alleged unfair competition in several sectors whose exports are important to European countries in favor of the motion, including Spanish pork.
After an intense Chinese pressure campaign in this regard, according to informed sources alerted to ABC, the President of the Government Pedro Sánchez concluded in mid-September his second official visit to the Asian giant in less than a year with important economic agreements, a second Cervantes Institute in Shanghai – the first Western country with two cultural centers on Chinese soil – and a call to “reconsider our position” to avoid a trade war “that would benefit no one.” Sánchez even offered to mediate between China and the EU.
Spain, however, would end up abstaining from the vote. held at the beginning of October to maintain tariffs, which went ahead thanks to the majority support of EU countries despite opposition from Germany.
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