Chinese car companies have urged Beijing to impose import taxes of up to 25% on European Union vehicles if the EU implements tariffs on cars from China, according to state media reports.
The call was made during a closed-door meeting organized by China’s Ministry of Commerce, which included representatives from both Chinese and European car firms.
The proposed measures would specifically target EU cars with large petrol engines.
This follows the EU’s recent threat to impose tariffs of up to 38% on Chinese electric vehicles (EVs) starting July 4.
The meeting in Beijing included four Chinese and six European car companies, according to a social media account linked to state broadcaster CCTV. “China’s car companies called on the government to adopt firm countermeasures against the EU,” the report stated.
“It is suggested that within the limits allowed by World Trade Organization rules, a higher provisional tariff be imposed on large-displacement petrol vehicles imported from Europe.”
These reports align with an article from last month by the state-run newspaper Global Times, which advocated for 25% tariffs on cars with petrol engines larger than 2.5 liters. The European Commission (EC) announced last week that it had “provisionally concluded” that Chinese EV manufacturers would face tariffs if discussions with Chinese authorities did not yield an effective solution.
Firms cooperating with the investigation, initiated in October, would face an average 21% duty, while non-cooperating firms could face a 38.1% tariff.
These tariffs would be in addition to the existing 10% tariff on all electric cars produced in China.
The EU’s move follows the US’s recent decision to increase its tariff on Chinese electric cars from 25% to 100%.
The Chinese government has condemned these decisions as protectionist and has begun taking retaliatory measures.
Earlier this week, China initiated an investigation into imports of European pork products.
Last month, Beijing signaled a similar move by launching an investigation into imports of chemicals from the EU and US.