Image source, Getty Images
- author, Joao da Silva
- role, Business reporter
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Chinese automakers have demanded that Beijing impose import taxes of up to 25 percent on EU rivals if the EU imposes tariffs on cars from China, according to Chinese state media.
The request was reportedly made at a closed-door meeting hosted by China’s Ministry of Commerce, which was also attended by representatives of European car manufacturers.
The measure applies to EU cars with large gasoline engines.
According to an article published by a social media account affiliated with state-run CCTV, the meeting in Beijing was attended by four Chinese and six European automakers.
German car giant Volkswagen confirmed to the BBC that it had attended the meeting but declined to comment on what was discussed.
Porsche declined to comment, while BMW did not immediately respond to the BBC’s queries.
“Chinese auto companies have called on their governments to take firm countermeasures against the EU,” the report said.
“To the extent permitted by World Trade Organization rules, it is proposed to impose higher interim tariffs on large-displacement gasoline vehicles imported from Europe.”
The report coincides with a report published last month in the state-run Global Times newspaper which said a 25 percent tariff should be applied to cars with gasoline engines larger than 2.5 liters.
The measure targets “luxury or ultra-luxury cars” and the additional tax is “unlikely to make a significant difference to sales volumes”, Bill Russo of consultancy AutoMobility told the BBC.
The European Commission, which oversees the EU, said last week it had “tentatively concluded” that Chinese electric vehicle makers would face tariffs “if discussions with the Chinese authorities do not lead to an effective solution.”
Companies that cooperate with the investigation, which began in October, face an average 21 percent tariff, while those that do not could face a 38.1 percent tariff.
These charges would be on top of the current 10% tariffs imposed on all electric vehicles made in China.
The Chinese government denounced the decision as protectionism and began taking retaliatory measures.
Earlier this week, China launched an investigation into imports of European pork products.
