The introduction of countervailing duties by the European Union (EU) against Chinese manufacturers of electric vehicles could lead to a trade war between China and the EU . It can start as early as November. This view was expressed by Cui Hongyan, a professor at the Academy of Regional and Global Governance at Peking University for Foreign Studies.
„Now the EU must justify its actions both within the union and outside it, quotes the expert newspaper Global Times. “Whether this path leads to a potential trade war depends on the negotiations that take place between now and November.“
According to the professor, the introduction of customs duties by the European Union on the Chinese manufacturers of electric vehicles, despite the previously started consultations between the European country and the PRC, was quite expected. “Since the EU's position had not changed significantly in such a short time, a positive outcome seemed unlikely,”, he explained.
As Cui Hongjian explained, at this stage the purpose of the upcoming discussions is to avoid an increase in tension.
Previously, the leading Chinese car manufacturer SAIC Motor spoke out against the increase in tariffs and announced its readiness to request hearings where it intends to protect its interests. According to this company, during the anti-subsidy investigation, the European Commission ignored some of the information provided, as well as objections, and based on the so-called refusal to cooperate with the investigation in accordance with Article 28 of the Countervailing Measures Regulation "created an unfavorable presumption by inflating subsidy rates on a number of items".
On July 4, the EU introduced tariffs ranging from 17.4% to 37.6% on electric vehicles from China. As the European Commission commented, these tariffs were introduced based on the results of a 9-month long investigation to combat “illegal subsidies”. The EU's highest executive body specified that consultations with China on this topic "have intensified in recent months". and the European side expects to "reach a negotiated agreement" in accordance with World Trade Organization standards.