According to the nation’s official media, Chinese automakers have urged Beijing to levy import levies of up to 25% on rivals in the European Union in the event that the trade bloc places tariffs on Chinese-made automobiles.
Reportedly, the demand was made during a meeting held behind closed doors by China’s Ministry of Commerce, in which representatives of European automakers were also present.
The EU’s huge petrol-powered cars would be the target of the regulations.
China’s manufacturers of electric vehicles (EVs) were warned last week by the EU with tariffs of up to 38% from July 4.
Four Chinese and six European automakers attended the conference in Beijing, per a post on a social media platform linked to the official CCTV broadcaster.
Volkswagen, the massive German automaker, acknowledged to the BBC that it attended the conference but would not comment on the topics covered.
BMW and Porsche, two other allegedly present European corporations, did not immediately respond to demands for comment from the BBC.
“China’s car companies called on the government to adopt firm countermeasures against the EU,” according to the report.
“It is suggested that within the limits allowed by Word Trade Organization rules, a higher provisional tariff be imposed on large-displacement petrol vehicles imported from Europe.”
The findings are consistent with a story that appeared in the state-run publication Global Times last month, stating that cars with gasoline engines larger than 2.5 liters ought to be subject to 25% levies.
“An additional tax is not likely to make much of a difference on volumes,” according to Bill Russo of the advice firm Automobility, who told the BBC that the measure would target “luxury or ultra luxury” automobiles.
Last week, the EU’s governing European Commission (EC) said that, “should discussions with Chinese authorities not lead to an effective solution,” tariffs against Chinese electric vehicle (EV) producers would be applied. This was a “provisional conclusion.”
Companies that participated in the October-launched probe will be subject to an average duty of 21%; those that did not may be subject to one of 38.1%.
These costs would be in addition to the 10% tax that is currently applied to all Chinese-made electric vehicles.
The US took a considerably more daring step last month, boosting its tariff on Chinese electric cars from 25% to 100%, which prompted the EU to step in.
After labelling the choices as protectionism, the Chinese government retaliated by launching a series of actions.
China opened an inquiry into European pork product imports earlier this week.
Beijing announced last month that it will be taking a similar action by looking into chemical imports from the US and the EU.
Source: BBC
