BEIJING – Chinese automakers have urged Beijing to hike tariffs on imported European gasoline-powered cars in retaliation for Brussels’ curbs on Chinese EV exports, the state-backed Global Times newspaper said on Wednesday.
In a closed-door meeting Tuesday also attended by European car companies, China’s auto industry “called on the government to adopt firm countermeasures (and) suggested that positive consideration be given to raising the provisional tariff on gasoline cars with large-displacement engines,” according to the report.
The meeting, organised by China’s Ministry of Commerce, was held in Beijing and attended by SAIC, BYD , BMW , Volkswagen, and Porsche , two people with direct knowledge of the matter said.
The main aim of the meeting was to put pressure on Europe and lobby against the tariffs, they added according to Reuters.
EU trade policy is turning increasingly protective amid concerns that China’s production-focused, debt-driven development model could see the 27-member bloc flooded with cheap goods, including electric vehicles, as Chinese firms look to boost sales overseas due to weak demand at home.
The European Commission’s June 12 announcement that it would impose anti-subsidy duties of up to 38.1% on imported Chinese EVs from July followed a move by the United States to hike tariffs on Chinese cars in May, and opens a new front in the West’s trade war with Beijing.
The Global Times first reported late last month that a Chinese government-affiliated auto research centre was suggesting China raise its import tariffs on imported gasoline sedans and sport utility vehicles with engines larger than 2.5 litres to 25%, from the current rate of 15%.
Chinese authorities have previously hinted at possible retaliatory measures through state media commentaries and interviews with industry figures.
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