Johannes Neudecker/picture-alliance/dpa/AP
Wang Wenbin, a spokesperson for China’s Ministry of Foreign Affairs, said this at a press conference in March.
Taipei/London
CNN
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China has vowed to steadfastly defend its interests in the face of massive new U.S. tariffs, warning that trade barriers will affect broader relations between the two economic powers.
President Joe Biden announced Tuesday that tariffs on $18 billion worth of imported Chinese electric vehicles and a range of other products will rise over the next two years.
The White House says the measure is aimed at protecting American workers and businesses in the face of China’s unfair trade practices, including “flooding global markets with artificially low-cost exports.” Stated.
China’s Ministry of Commerce said in a statement that China “firmly opposes” new tariffs.
“The U.S.’s … tariff hikes contradict President Joe Biden’s pledge not to seek to restrict or contain China’s development or to divide or sever our relationship with China.” “This action will have a serious impact on the atmosphere of bilateral cooperation.”
Tariffs on EVs imported from China will be more than quadrupled from 27.5% to 100%. This is a policy measure aimed at countering the Chinese government’s practice of imposing a 40% tariff on auto imports from the United States while encouraging aggressively low pricing by domestic EV manufacturers.
In addition to EVs, the increased tariffs include imports of Chinese steel and aluminum, traditional semiconductors, battery components, critical minerals, solar cells, cranes, and medical products.
Tariffs on solar cells and semiconductors will be doubled to 50%, and the remaining imported goods will be subject to a 25% tariff.
“China opposes the imposition of unilateral tariffs that violate[World Trade Organization]rules and “We will take all necessary measures to protect their rights,” he told reporters.
The Commerce Department said China will take decisive steps to protect its rights and interests and called on the Biden administration to “correct wrongdoings.”
China’s global goods trade surplus has skyrocketed in recent years and is now approaching $1 trillion, increasing tensions with the United States and Europe.
The Biden administration and European Union officials are concerned that Beijing is trying to tackle the problem of subsidy-supported overcapacity in a slowing economy by releasing surplus products onto global markets. ing. Leaders from the Group of Seven (G7) countries will discuss ways to protect their industries at a summit next month.
In response to another question during the press conference, Mr. Wang said that the growth of China’s new energy industry, including EVs, lithium batteries, and photovoltaic products, is driven by “continuous technological innovation, complete industrial and supply chains, and comprehensive “It is built on competitive market competition,” he added. ”
“Our leading edge is not a result of subsidies, but a combination of comparative advantage and market rules,” Wang said.
This story has been updated with additional information.
