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China threatens to freeze investments and impose sanctions in response to new EU duties

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The European Union has imposed countervailing duties on electric vehicles from China, which has prompted China's threats to freeze investments and impose retaliatory sanctions on European goods. UNN writes about this with reference to Bloomberg.

Details

China hopes to reach a compromise with the EU on tariffs and said it will protect the rights of its companies by all means necessary.

Bloomberg's sources said that Beijing has not yet put forward proposals that would meet the EU's stringent requirements, including consistency with World Trade Organization rules and the impact of duties. 

In general, China accused the EU of using divide-and-conquer tactics and urged its producers not to enter into separate agreements as it seeks to create a single framework agreement under the leadership of the Chinese trade body. 

Beijing has threatened to freeze investments in EU countries that supported the tariffs, as well as to impose sanctions on European goods such as dairy products, pork, brandy, and cars with large engines. 

European officials expect China's response as early as next month, and member states will push the EU to reach a deal when it does. 

China, which cut tariffs on large cars to 15% in 2018, is now warning of a possible return to 25%.

Recall 

The European Commission has approved additional duties of up to 35.3% on imports of electric vehicles from China. The decision will come into force on October 31. These are the final countervailing duties on imports of battery electric vehicles (BEVs) from China for a period of five years.

At the same time, the EU and China continue to seek alternative solutions, compatible with WTO requirements, to effectively address the issues identified in the investigation. The Commission also remains open to negotiating price commitments with individual exporters, in line with EU and WTO rules.

У Tesla буде найнижчий тариф на ввезення електромобілів із Китаю в ЄС20.08.24, 17:53

Major European automakers, such as Mercedes-Benz Group AG and BMW AG, opposed the introduction of tariffs, fearing that the conflict could negatively affect their sales in China, especially at a time when their positions are already weakened.

Although the EU and China continue to discuss alternative solutions, no breakthrough has been achieved so far. This increases the risk of escalation of tit-for-tat in relations where bilateral trade in goods amounted to 739 billion euros in 2023.

ЄС планує підвищити мита на продовольство та добрива з росії та білорусі – Bloomberg25.10.24, 06:41

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