Chinese state media: The EU's tariffs on Chinese electric cars are a miscalculation

After the European Union proposed to impose temporary countervailing duties on Chinese electric cars, Chinese state media published an article criticizing the EU for miscalculating its account and undermining fair competition in the name of maintaining fair competition.

Xinhua News Agency pointed out in a quick commentary on Wednesday (June 12) evening that the EU followed the footsteps of the United States in offering tariffs and insisting on protectionist actions, which not only damaged the legitimate rights and interests of China's electric vehicle industry, but also disrupted and distorted the global auto industry chain supply chain, including the EU.

The article said that the European side's politicization and weaponization of economic and trade issues will affect the atmosphere of bilateral economic and trade cooperation between China and Europe, harm the interests of EU consumers, and undermine the overall situation of the EU's own green transformation and global cooperation on climate change.

Xinhua News Agency pointed out that the EU's tax increase on Chinese electric vehicles has dealt another blow to global free trade, which is the EU can not calculate the "rule order account". China and Europe are an important part of the global industrial chain and supply chain, and Germany and other EU countries are deeply integrated with China's automotive industrial chain and supply chain.

"Eu policymakers should understand that, in a globalized economy, imposing tariffs on the auto industry will only further distort the market and break up the global production and supply chain, which will do more harm than good to the long-term development of the auto industry," the article said.

Xinhua also said that it wants to rely on tax policies to create a comfort zone, which is the EU calculated the wrong "economic development account." Eu policymakers should understand that the key to the rise of China's electric car industry is not closure and exclusivity, but openness and cooperation.

The article stressed that Chinese brand electric vehicles are selling well in the EU, relying on competitive prices, high-quality performance and perfect service. Today, the EU wields the big stick of tariffs, which makes the cost of buying cars in the EU consumers significantly increase.

Xinhua said that in addition to the "consumption account", the EU should also carefully calculate the "environmental account". At present, the EU holds high the banner of green development while brandishing the big stick of protectionism. Such "double standards" will only undermine its global credibility, undermine international cooperation on climate change, and hinder the global green transition.

The article also said: "To impose tariffs on Chinese electric vehicles, this account is a loss or a profit, the EU should carefully calculate."

The Global Times pointed out in its editorial that the EU raised a white flag to protectionism, and said that the proposed imposition of temporary countervailing duties on Chinese electric vehicles would not only damage the legitimate rights and interests of China's electric vehicle industry, but also disrupt and distort the global auto industry chain supply chain, including the EU.

The European Commission on Wednesday informed automakers that it would impose provisional anti-subsidy duties of up to 38.1 percent on electric vehicles imported from China from July 4, much higher than expectations of 10 to 25 percent and prompting an immediate rebuke from China.

In response, China's commerce ministry said it would resolutely take all necessary measures to protect the legitimate rights and interests of Chinese companies, but did not disclose specific counter-measures.

While the EU is targeting Chinese electric car makers, some Western automakers such as Tesla, BMW and Renault will also face higher costs for building cars in China and exporting them to the EU.

Eu member states are divided over whether to impose tariffs on Chinese electric vehicles, with France in favour and Germany opposed. China is an important market for German carmakers.