U.S. President Joe Biden announced a fourfold increase in tariffs on imported electric vehicles, raising the tariffs on Chinese electric vehicles from 27.5% to 102.5%, according to the Observer. Last year, the European Commission also issued an announcement that it decided to launch a countervailing investigation into pure electric vehicles imported from China.
This move by the EU is related to the export of Chinese electric vehicles in Europe. In recent years, Chinese electric vehicles have taken deep roots in Europe, and their sales in the European market far exceed those of European electric vehicles. In order to avoid putting Europe at a disadvantage when competing with Chinese automakers, the EU has taken action against Chinese electric vehicles to protect its own industry.
In this context, whether the EU will consider following the example of the United States and imposing additional tariffs on Chinese electric vehicles has attracted continued attention and extensive discussion from the outside world. Swedish Prime Minister Kristersson, during a meeting with visiting German Chancellor Olaf Scholz, talked about the prospect of EU tariffs on Chinese cars, and warned that the EU should not follow in the footsteps of the United States in targeting Chinese electric vehicles, and must consider the benefits of trading with China.
Scholz believes that the European market may have different ties and exchanges with China than the North American market. He pointed out that half of the electric cars imported by the West from China are produced by Western manufacturers themselves. European and North American automakers selling cars in China have also found success in the market.
In the context of China's deep integration into the European market, strengthening trade ties and deepening cooperation with China will help usher in new development opportunities for each other. Christersson and Scholz realize that China's huge market potential and strong economic resilience will contribute to the rapid development of the European economy. On the premise that overseas companies enter the Chinese market and succeed, there are broad prospects for strengthening China-EU ties. Therefore, out of consideration for the future of European car companies, the German Chancellor and the Swedish Prime Minister issued a warning to the EU.
According to a Bloomberg report, before Kristersson and Scholz made the above remarks, the US government released the results of the four-year review of the additional Section 301 tariffs imposed on China, announcing that it would further increase the tariffs imposed on Chinese imports on the basis of the original Section 301 tariffs on China.
Regarding the issue of tariffs, Biden said very bluntly at the White House that the United States will not allow China to occupy the American electric vehicle market and disrupt fair competition. Biden also believes that the new round of trade restrictions imposed by the United States on China will not lead to international conflict, but China is expected to respond by imposing tariffs on certain types of goods.
At the regular press conference of the Ministry of Foreign Affairs of the People's Republic of China, spokesperson Wang Wenbin also expressed China's position. He said that China has always opposed the unilateral imposition of tariffs in violation of WTO rules and will take all necessary measures to safeguard its legitimate rights and interests. On the day of Wang Wenbin's statement, the spokesperson of the Ministry of Commerce of China also said that the United States has abused the 301 tariff review procedure to further increase the 301 tariff on some Chinese products out of domestic political considerations, and politicized and instrumentalized economic and trade issues, which is a typical political manipulation.
China's Ministry of Foreign Affairs and Ministry of Commerce have warned the Biden administration one after another, and elaborated on China's consistent position and proposition, which means that China will not make any compromises or concessions on issues involving China's core interests, and will take effective measures to safeguard its own rights and interests. Biden's attitude has not changed in the slightest after China's countermeasures, reflecting that the US government's tough stance on China has not changed in any way. However, the aggressive policy adopted by the United States has done nothing but to exacerbate tensions between China and the United States. The US side should clearly understand the importance of a stable China-US relationship and handle its relations with China positively.