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China Mulls Higher Auto Tariffs in Response to U.S., EU
Beijing is considering raising tariffs on large-displacement vehicles in retaliation against Washington’s measures and in preparation for the possible EU decision to penalize Chinese electric vehicles.
© BYD
Auto China
In a statement, the China Chamber of Commerce to the European Union (EU) said it had been “informed by industry experts” about the potential tariff hike and outlined the implications for European and US carmakers.
The group pointed to the US’s recently announced increase in tariffs on Chinese electric vehicles and possible similar moves by Brussels, which is investigating Beijing’s subsidies for its carmakers.
The chamber of commerce cited an interview published by the Chinese state-run Global Times newspaper, in which Liu Bin, a leading expert who helps shape the government’s car industry policy, said Beijing was considering raising tariffs on imported large-engine vehicles to 25 per cent.
Liu identified sedans and sport utility vehicles with engines larger than 2.5 litres as the target of the measure, which he said “would be in line with WTO [World Trade Organization] rules” and “help China promote the transformation and upgrading of the automobile industry towards electrification and low carbon”.
Local media reported over the weekend that China’s commerce ministry had launched an anti-dumping investigation into imports of polyoxymethylene copolymer, a material commonly used in the auto industry, from the US, EU, Japan and Taiwan.
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