China has already reacted to the European Union’s decision on tariffs on electric cars

China has already reacted to the European Union’s decision to increase tariffs on electric vehicles. Chinese say this is “a blatant act of protectionism”.

The European Commission announced on Wednesday the first provisional decision as part of the investigation into subsidies for electric cars manufactured in China.

From the beginning of next month, it will impose interim tariffs that will see Chinese car manufacturers face additional duties of up to 38%.

On Thursday, Chinese Commerce Ministry spokesman He Yadong criticized the move. “Not only will it harm the legitimate rights and interests of China’s electric vehicle industry, disrupt the mutually beneficial cooperation between China and Europe in the field of new energy vehicles, it may also distort the global automobile industry and supply chains, including those of the EU,” he said at a weekly press conference.

“This is a blatant act of protectionism,” he added.

Following an anti-subsidy inquiry into China’s electric vehicles, the European Commission concluded that Chinese companies benefit “from unfair subsidies, which is causing a threat of economic harm to EU BEV producers”.

Additional fees vary depending on the company

BYD, the largest Chinese company making electric cars in the world, would have to bear an additional charge of 17.4%. Geely, which owns Sweden’s Volvo, would be affected with another 20%. For SAIC, a company that this year partnered with Audi for electric cars, the increase would be 38.1%.

The president of the European Commission stated that China has the right to present the case to the World Trade Organization and will take “all necessary measures to safeguard the legitimate rights and interests of Chinese companies”.

Last month, US President Joe Biden imposed new tariffs on Chinese electric vehicles, advanced batteries, solar cells, steel, aluminum and medical equipment.

Biden stated that the subsidies that the Chinese government guarantees to companies in the country mean that they do not need to make a profit, giving them an unfair advantage in global trade.