BEIJING: China’s Ministry of Commerce (MOFCOM) on Thursday reaffirmed the country’s commitment to green development and slammed “certain countries and regions” mulling to take restrictive measures against Chinese electric vehicles (EVs), in response to reports of a prominent Chinese expert calling for a temporary tariff hike on imported cars with large engines.
The remarks marked a sharpened response to the US and the EU’s crackdown measures against Chinese EVs and other new-energy products, as Washington has set a date for imposing tariff increases on a slew of Chinese products and US officials are actively and publicly demanding US allies, particularly the EU, to follow suit.
Chinese officials have repeatedly vowed to take all necessary measures to defend China’s interests. And experts said that when the US actually imposes the tariff moves and if the EU would do the same, China will definitely take countermeasures, though the specific moves and their scopes remain to be seen.
At a press briefing on Thursday, He Yadong, a MOFCOM spokesperson, was asked whether he could confirm a media report that China is considering raising the temporary tariff rate on imported cars with engines larger than 2.5 liters and if such a move is a retaliation against the moves by the EU and the US, the spokesperson did not offer a direct response.
“China is firmly committed to the path of green and low-carbon development, and it has always encouraged and supported the green and low-carbon transformation and upgrading of various industries to achieve high-quality development,” He said.
He further noted that experts in all industries, including the auto industry, are engaged in research on China’s green development path and make recommendations for tackling global climate change.
In an exclusive interview published on Tuesday, a prominent expert in China’s auto industry who has participated in drafting various industrial policies suggested that China consider raising temporary tariff rates on cars with engines larger than 2.5 liters, as part of a broad effort to promote green development.
As the move is widely anticipated to have a major impact on auto imports from the EU and the US, many Western media outlets have interpreted the suggested move as Beijing’s response to Washington’s move to hike tariffs on Chinese EVs and other new-energy products and the EU’s so-called anti-subsidy probe into Chinese EVs, which could also lead to tariff hikes.
Responding to the same question, He also slammed the restrictive moves against Chinese EVs.
“What I want to emphasize is that some countries and regions are currently deviating from the concept of green development, violating the principles of the market economy and WTO rules, and introducing restrictive measures in the field of new-energy vehicles,” He said.
Such moves will only harm the interests of their own consumers and undermine the global green transition and the world’s capacity to tackle climate change, the MOFCOM spokesperson said.
The remarks came after the US announced on Wednesday US time that it will start imposing increased tariffs on an array of Chinese products, including EVs, EV batteries, semiconductors and medical products on August 1. While US officials previously announced the tariff hikes, this is the first time the US has revealed explicitly the date when the tariff increases will take effect.
Chinese experts said China will not sit idly by if its legitimate rights and interests are harmed by other countries, and China will, without any doubt, take countermeasures to defend its rights and interests.
“China has repeatedly warned the US against taking such a move and called for addressing differences through cooperation. But the US has shown no sincerity. So, if it doesn’t heed such calls, China will take countermeasures as it did in 2018,” Bai Ming, researcher of Chinese Academy of International Trade and Economic Cooperation, told the Global Times on Thursday, referring to China’s reciprocal tariff hikes in response to the tariff war that the US launched against China.
