Beijing “does not approve or accept the decision of the European Commission to impose additional customs duties on electric vehicles manufactured in China,” a spokesperson for the Ministry of Commerce stressed on Wednesday.
In response, China took action under the WTO dispute settlement mechanism, he added in a statement, assuring that the Asian country “will take all necessary measures” to protect interests of its companies.
China considers that the EU decision contains “many unreasonable aspects” and constitutes a protectionist act, he noted.
The European Commission adopted a regulation on Tuesday providing for additional customs duties on electric cars imported from China, accused of being “unfairly subsidized”.
Brussels has decided to add to the 10% tax already in place a surcharge of up to 35% on Chinese-made electric vehicles.
The additional taxes will amount to 7.8% for Tesla cars manufactured in Shanghai, 17% for BYD, 18.8% for Geely and 35.3% for SAIC, according to a document sent to member countries on September 27.
Germany, Hungary, Slovakia, Slovenia and Malta voted against the Commission’s proposed taxes, however failing to muster the majority needed to reject it.
This decision, valid for five years, was published Tuesday evening in the Official Journal of the EU and must come into force on Wednesday.
“China has always advocated the resolution of trade disputes through dialogue and consultation,” said the Chinese Ministry of Commerce on Wednesday, noting the desire of the European side to continue discussions already started on this subject.
Chinese Commerce Minister Wang Wentaole and European Trade Commissioner Valdis Dombrovskis held negotiations to try to find a solution, but to no avail.
The two parties nevertheless agreed to continue their consultations.