“This potential action is particularly important given recent developments such as the US government’s announcement of increased tariffs on Chinese electric vehicles and the Brussels government’s preparation of preliminary measures in a high-profile anti-subsidy investigation into Chinese electric vehicles. This will impact automakers in Europe and the United States,” the floor statement said.
The warning comes amid friction in China’s trade relations with the West, which is expected to worsen in the coming weeks.
The European Union has launched a series of high-profile measures to counter Chinese subsidies in various industries that it says are distorting the European single market. Most notably, Brussels plans to complete its investigation into China’s subsidies to the EV sector by June 6 and apply interim tariffs in early July.
Beijing has indicated it will not lie down on either option. On Sunday, China’s Ministry of Commerce announced an anti-dumping investigation into imports of polyoxymethylene copolymer, a chemical commonly used in automotive engineering, from the US, EU, Japan and Taiwan.
It has already launched an investigation into alleged dumping in the European brandy sector, which appears to be targeting French cognac exports. Paris has long been a strong supporter of tougher EU trade policies toward China.
The United States and China have been in a trade war for years, but some speculate that the EU is on the verge of a conflict of its own with Beijing.
European Commission President Ursula von der Leyen on Tuesday sought to downplay that prospect, but acknowledged that her hard-line policies would remain even if she secured another term after next month’s European Parliament elections.
“I don’t think we’re in a trade war. My motto is ‘de-risking, not decoupling.’ I think it’s clear that we are in the category of removing risk from China here. We have been cut off from Russia,” von der Leyen said at a debate for the top committee position in Brussels on Tuesday night.
03:58
President Emmanuel Macron thanks Xi Jinping for his ‘promise’ not to sell arms to Russia
President Emmanuel Macron thanks Xi Jinping for his ‘promise’ not to sell arms to Russia
But von der Leyen denied speculation that this would happen.
“We share some of the other side’s concerns, but we have a different approach, a more tailored approach,” she said.
“The United States has imposed blanket tariffs on many products. However, we have launched an investigation [into Chinese EVs], I think it’s 8 months old according to WTO rules, so the investigation is still ongoing. ”
“But if we are able to confirm that such subsidies exist, we can ensure that the level of obligations we impose corresponds to the level of damage and is more targeted and more tailored.”
The average EU tariff applied to products after an anti-subsidy investigation is 19%. Chinese cars already face a 10% tariff on arrival in the EU market.
