EU criticized over vote for tariffs on China's EVs

The European Union's latest move to impose tariffs on Chinese electric vehicles will not only fail to resolve any issues, but also weaken the confidence of Chinese companies to invest in and collaborate with their EU partners, the Ministry of Commerce said on Friday.

The comment came as the EU voted on the same day to implement definitive tariffs on battery EVs manufactured in China, the European Commission, the EU's executive arm, said in a statement.

Despite this vote, bilateral negotiations can continue until Oct 30, offering the possibility of reaching an agreement to avoid the increased tariffs.

China firmly opposes the EU's final draft decision, but has taken note of the EU's expression and willingness to continue resolving the issue through negotiations.

The technical teams from China and the EU will continue their discussions on Monday, said a spokesperson from the Ministry of Commerce in an online statement.

The ministry urges the EU to take real action in implementing its political commitment and return to the right path of resolving trade disputes through consultations.

China will also take all necessary measures to resolutely safeguard the interests of its businesses, it added.

Also on Friday, the Brussels-based China Chamber of Commerce to the European Union, urged the EU to act prudently, delay the implementation of tariffs and focus on resolving disputes and differences through talks.

This would help avoid the escalation of bilateral trade disputes and jointly safeguard free trade and prosperity in the green and clean energy sectors between the two sides, as well as globally, the chamber said in a statement on Friday.

Zhejiang Geely Holding Group, which owns the Zeekr, Volvo Cars and Polestar vehicle brands, said that increased tariffs would negatively impact its sales in European markets.

German carmakers have also expressed strong opposition, with BMW stating earlier this week that imposing additional high tariffs on Chinese EVs could intensify the trade dispute between Beijing and Brussels.

Zhang Xiang, an auto industry researcher at the Beijing-based North China University of Technology, said that the EU's vote may provide short-term advantages for European automakers, but it could ultimately result in a loss of competitiveness and strain China-EU business ties in the long run.

"The European automakers would become complacent and lose long-term competitiveness due to the absence of intense competition," said Zhang.

If a mutually beneficial outcome cannot be reached, Chinese companies may choose to steer away from the European market and explore new opportunities in other regions, said Bai Ming, a member of the Academic Degree Committee at the Chinese Academy of International Trade and Economic Cooperation.

Instead of investing elsewhere in Europe, carmaker BYD will invest about $1 billion to build a plant in Turkiye, according to information released by the Turkish Ministry of Industry and Technology in early July. The factory will have an annual capacity of 150,000 vehicles.