China expresses concern on EU EV tax

China expressed its grave concern and strong dissatisfaction following the European Commission's preliminary ruling to impose a temporary anti-subsidy tax on imported electric cars from China, the Ministry of Commerce said on Wednesday.

China has called on the European Union to immediately rectify its wrongful actions and seek dialogue and negotiation to effectively address the ongoing trade frictions between the two parties, said a spokesperson for the ministry.

The decision, which disregards both factual evidence and World Trade Organization rules, has been made despite China's repeated strong objections. It also ignores the appeals and warnings from several EU member states' governments and industry sectors, the spokesperson said.

The ruling fails to recognize that China's competitive advantage in the electric car industry is a result of fair and open competition, and is a violation of WTO rules and a failure to acknowledge the comprehensive cooperation of Chinese companies during the investigation, the spokesperson said.

It is a blatant act of exercising protectionism, escalating trade frictions and undermining fair competition under the guise of "maintaining fair competition”, which will not only jeopardize the legitimate rights and interests of China's electric car industry but also disrupt the global automotive supply chain, the spokesperson added.

The actions taken by the EC risk creating an unfavorable atmosphere for bilateral economic and trade cooperation between China and the EU. Such measures not only hinder the interests of European consumers but also jeopardize the EU's own goals of green transitioning and collaboration in addressing climate change on a global scale, the spokesperson said.

China will keep abreast of the developments on the EU side and is prepared to take necessary measures to firmly protect the rights of Chinese companies involved, the spokesperson added.