Chinese carmakers seek retaliatory tariffs on EU cars, state media reports via Reuters
Written by Joe Cash and Zoey Zhang
Beijing – Chinese automakers have urged Beijing to raise prices on gasoline-powered vehicles from European countries in retaliation for Brussels’ ban on Chinese EV sales, the state-backed Global Times newspaper said on Wednesday.
In a closed-door meeting on Tuesday attended by European car companies, China’s auto industry “asked the government to take strong measures (and) suggest that temporary tax increases on gasoline vehicles with large displacement engines be carefully considered,” according to the report.
The meeting, organized by China’s Ministry of Commerce, was held in Beijing and was attended by SAIC, BYD (SZ:), BMW (ETR:), Volkswagen (ETR:), and Porsche (DE:), two people with direct knowledge of the matter said.
The main purpose of the meeting was to put pressure on Europe and lobby for an end to tariffs, they added.
EU trade policy is increasingly on the defensive amid concerns that China’s production-oriented, credit-driven model could see the 27-member bloc flooded with cheap goods, including electric cars, as Chinese firms look to boost sales abroad due to weak demand at home. .
The European Commission’s June 12 announcement that it will impose anti-subsidy duties of up to 38.1% on imported Chinese EVs from July follows the United States’ move to raise tariffs on Chinese vehicles in May, and opens a new beginning for Western trade. war with Beijing.
The Global Times first reported late last month that China’s government-affiliated automotive research institute was proposing that China raise import tariffs on imported gasoline sedans and sports cars with engines larger than 2.5 liters to 25%, from the current rate of 15 %.
Chinese authorities have previously hinted at possible retaliation through comments to state media and interviews with industry figures.
The same newspaper last month also revealed that Chinese companies planned to ask the authorities to open an investigation against the dumping of European pork products, which the Ministry of Commerce of China announced on Monday that it would do.
It also urged Beijing to look at EU milk imports.
BIG MONEY IS BIG BUSINESS
EU car exports to China were worth 19.4 billion euros ($20.8 billion) in 2023, and the bloc bought 9.7 billion euros of electric vehicles from China, according to EU figures.
China accounts for about 30% of German automakers’ sales, and Germany is the leading exporter of cars with engines of 2.5 liters or more, having exported $1.2 billion worth of cars to China since the start of this year, China imports data show. .
Slovakia is China’s fourth-largest and EU’s second-largest supplier of large-engine vehicles. This year it produced sports cars worth $803 million.
The United States, the United Kingdom and Japan are all major exporters of cars with engines larger than 2.5 liters, and are likely to benefit the most from the proposed tax increase.
($1 = 0.9314 euros)
(This story has been edited to correct the Porsche RIC stock code in section 3)
(Additional reporting by Ella Cao, Albee Zhang and Bernard Orr; Editing by Kim Coghill and Jamie Freed)
