Stop turning trade into a political issue: Mofa
The Foreign Ministry has urged the European Commission to stop turning trade into a political issue and avoid harming mutual trust between China and the European Union, as shares in Chinese automakers ended on a mostly positive note on Thursday. The comment from the Foreign Ministry came as the European Commission announced it would impose extra duties of up to 38.1 percent on imported electric cars from China starting in July.  China will take all necessary measures to counter these actions, spokesperson Lin Jian told a news conference in Beijing.  Xinhua news agency had earlier said the move by the EU violates the rights and interests of the nation's EV industry and wreaks havoc on the global automotive supply chain. In a commentary published late on Wednesday, Xinhua said "the EU's justification for these tariffs are based on claims of unfair competition due to so-called 'distortive' Chinese government subsidies. However, this claim is nothing but a thinly veiled excuse for protectionism". Less than a month after Washington announced plans to quadruple duties for Chinese EVs to 100 percent, Brussels said it would combat excessive subsidies with additional tariffs ranging from 17.4 percent for BYD to 38.1 percent for SAIC, on top of the standard 10 percent car duty. The move comes as European automakers are being challenged by an influx of lower-cost EVs from Chinese rivals. Still, there's virtually no support for tariffs from the European auto industry. German automakers in particular are heavily dependent on sales in China and fear retribution from Beijing. European auto firms also import their own Chinese-made vehicles. The Xinhua commentary continued by saying the EU should instead "embrace this competition as an impetus for its own development". It added that rather than imposing tariffs, the EU should seek collaborative solutions that benefit all parties involved.  Meanwhile, shares in BYD shot up more than five percent on Thursday on the Hang Seng Index, where carmakers NIO and Geely also ended the day 1.3 percent and 1.6 percent higher. SAIC was down more than 1.5 percent in Shanghai. (Additional reporting by Reuters)_____________________________
Last updated: 2024-06-13 HKT 16:44 