Chinese companies want retaliation
According to an article published on a social media account linked to state broadcaster CCTV, Chinese companies from the automotive industry presented their demands during a closed-door meeting with the Chinese Ministry of Commerce. The meeting was attended by four Chinese and six European car manufacturers, as well as representatives of the industry and research bodies. Chinese carmakers have called on Beijing to adopt the “toughest measures”, including introduction of 25 percent tax on cars with large engine capacity.
Beijing's idea of retaliation in the form of a temporary raise import tax on vehicles with engines larger than 2.5 liters was first raised in an article published in the state-run Global Times newspaper in May on the eve of the EU investigation.
EU tariffs on Chinese cars
Last week, the EU announced that it plans to raise tariffs on Chinese-made electric vehicles following an investigation into Chinese government subsidies in various industries. The state-owned car manufacturer suffered the most from the increase in customs duties SAIC Motor Corp., which was subject to a duty of 38.1 percent
In addition, the Commission decided to impose individual duties on the following companies: BYD (17.4%), Geely (20%). Other electric vehicle manufacturers in China that cooperated with the EC's investigation would be subject to prosecution duty of 21%., and those who did not cooperate, a duty of 38.1 percent. The European Commission has stated that its aim is to restore a level playing field.
At Tuesday's meeting, China's trade representative accused the EU of using the investigation as a pretext to steal trade secrets Chinese electric vehicle manufacturers.
