China disapproves EU EV tariffs, carmakers prepare alternative strategies

China expressed strong disagreement with the European Union's decision to increase tariffs on Chinese electric vehicles, while Chinese car manufacturers are considering adjustments and alternative strategies in response to the tariffs.

China on Thursday reiterated its disagreement with the EU's decision to impose hefty extra tariffs on electric vehicles (EVs) originating from China, saying that it does not align with regulations of the World Trade Organization (WTO).

Starting Wednesday, the EU's extra tariffs on Chinese EVs, which have been raised from 10 percent to as high as 43.5 percent, will apply for a period of five years.

"There are numerous unreasonable and non-compliant practices in the EU's investigation into Chinese electric vehicles. The Chinese side has rejected all the allegations, and provided substantial feedback and evidence, but the EU has failed to give full thought to these submissions. The ruling does not align with WTO regulations and fails to address the core concerns of the Chinese and European automobile industries," He Yadong, a spokesman of the Ministry of Commerce (MOC), told a press briefing.

The EU's decision will have immediate and significant impacts on the prices and competitiveness of Chinese EVs, according to experts.

While speaking at the 2024 Paris Auto Show, car manufacturer executives said they have not given up on the European market and are considering adjustments.

"You can't change the wind, but you can certainly adjust the sails. We'll definitely make some adjustments based on the tariffs," said Feng Xingya, president of the Guangzhou Automobile Group Co., Ltd. or the GAC Group.

In light of the EU's recent trade measures, they are becoming more cautious about setting up production plants in Europe.

"Whether local production can resolve the issue of tariffs is a complex question, to which we do not yet have an answer. The reasoning behind producing locally due to higher tariffs doesn't hold, but I believe the logic of producing where there is demand is valid," said Feng.

Dolly Zhang, a trade specialist who has helped Chinese car-makers go international for over 20 years, said that Chinese automakers have always been preparing for risks and challenges.

"Before the [EU's] trade remedy, they (Chinese car-makers) had already actively [been] looking for different route to the market, different production options, different ecosystem and cooperation, in order to prepare for different trade challenges," said Zhang, a partner of indirect tax customs and global trade of Deloitte China.

Despite of the trade tariffs, the Ministry of Commerce said China will continue to cooperate with other countries to maintain the stability of the global EV supply chain and pursue the green transformation.

China disapproves EU EV tariffs, carmakers prepare alternative strategies

China disapproves EU EV tariffs, carmakers prepare alternative strategies

China disapproves EU EV tariffs, carmakers prepare alternative strategies

China disapproves EU EV tariffs, carmakers prepare alternative strategies

Visiting Chinese Foreign Minister Wang Yi said Saturday China is willing to work with Lesotho to strengthen exchanges on governance experience, enhance coordination in multilateral affairs, and advance the China-Lesotho strategic partnership.

Wang, also a member of the Political Bureau of the Communist Party of China Central Committee, made the remarks when meeting with Lesotho Prime Minister Sam Matekane in the capital of Lesotho.

During the meeting, Wang congratulated Lesotho on the 60th anniversary of its independence this year, and spoke highly of Lesotho government's efforts to prioritize economic development and steer the African country onto a path of sustainable growth. Since the Beijing Summit of the Forum on China-Africa Cooperation (FOCAC) in 2024, the two sides have advanced cooperation under the 10 partnership action plans unveiled at the summit, successfully implementing a number of key projects to effectively promote Lesotho's development and revitalization, Wang said.

China stands ready to work with Lesotho to strengthen exchanges on governance experience, enhance coordination in multilateral affairs, and push for greater development of the China-Lesotho strategic partnership, he added.

Calling on the two sides to firmly support each other, Wang said that China will accelerate the implementation of its zero-tariff policy for African countries, including Lesotho, expand bilateral trade, investment and industrial cooperation, facilitate broader access of Lesotho's specialty products to the Chinese market, and continue to support Lesotho's national development.

China will continue to stand firmly with African countries, uphold justice for the Global South, including Lesotho, oppose unilateralism and acts of bullying, and work together to build a community with a shared future for humanity, Wang said.

On his part, Matekane said during the meeting that Lesotho cherishes its friendship with China and the strategic partnership between the two countries, and expressed gratitude for China's valuable support for the development of African countries, including Lesotho.

Lesotho firmly adheres to the one-China principle and resolutely supports China in safeguarding its core interests, he said, noting that his country stands ready to strengthen strategic mutual trust with China, expand people-to-people exchanges, jointly implement the outcomes of the FOCAC Beijing Summit, and deepen cooperation in areas such as infrastructure, manufacturing and energy.

Matekane stressed that China's zero-tariff policy for African products will inject new impetus into Lesotho's development. He also expressed Lesotho's willingness to strengthen solidarity and cooperation with China on multilateral platforms such as BRICS to jointly address global challenges.

On the same day, Wang also held talks with Lejone Mpotjoana, minister of foreign affairs and international relations of Lesotho.

China, Lesotho to strengthen exchanges, advance cooperation

China, Lesotho to strengthen exchanges, advance cooperation