Last week, on May 14, the United States increased tariffs on China's electric vehicles and other sectors, raising tariffs fourfold from 25% to 100%.
Amidst the increasingly tense trade relations between China and Western powers, news emerged on May 21 that China would adjust tariffs on some imported cars, possibly increasing them.
As soon as the news broke, rumors about taxing imported cars began to spread.
As we all know, cars are closely related to our daily lives, and many people even rely on them for travel.
In recent years, China’s automobile industry has developed rapidly, especially showcased at the Beijing Auto Show, where many foreign visitors have carefully measured and observed Chinese-made cars.
However, the United States feels envious of China’s booming automobile industry.
For now, this move by the U.S. has little impact on China, as data shows that China’s car exports to the U.S. only surpassed 10,000 units in 2022, with an export value of less than $460 million.
But just a week later, around May 21, a statement released by the official account of the EU Chamber of Commerce in China attracted attention from many Western countries.
The statement said that according to insiders, China is considering increasing tariffs on some large-displacement imported cars.
This news is undoubtedly a huge blow to automotive manufacturers in Europe and the United States.
According to reports from Hong Kong media, this move has a certain counteracting effect, targeting measures taken by some Western countries against Chinese electric vehicles.
According to World Trade Organization regulations, China can raise tariffs on certain large-displacement imported cars to 25%.
Large-displacement cars refer to vehicles with an engine displacement exceeding 2.5 liters.
It should be noted that large-displacement imported cars account for a significant proportion of imported cars in China, making up more than 30% of the total and selling very well. Among the total sales of large-displacement cars in China, imports have reached 80%.
If this news materializes, it will be a heavy blow to automotive manufacturers in Europe and the United States, especially those in Europe.
However, if China does increase tariffs, it will be fundamentally different from the U.S. approach.
According to experts, China’s proposed adjustment is actually very beneficial.
Large displacements are usually associated with high fuel consumption and high exhaust emissions. This proposal reflects China’s determination towards green development and can help us get closer to achieving the "dual carbon" goals.
Moreover, this is also in line with international rules and market principles, making it very reasonable.
Europe has reacted strongly to this.
The U.S. move has caused concern among European countries. On the 21st, U.S. Treasury Secretary Janet Yellen, in Frankfurt, tried to rally EU countries to jointly address what she called “China’s overcapacity.”
She claimed, “China’s industrial policies may seem distant to us, but if we do not respond strategically and in unity, our nations and businesses worldwide will be threatened.”
What they are actually worried about is their own countries' competitiveness and market share being overtaken.
However, the EU seems unwilling to accept the U.S. invitation.
EU President Ursula von der Leyen explicitly stated that the EU will not impose more taxes on Chinese products like the U.S.
She also said that the EU’s approach will not be the same as the U.S., but will instead adopt a “tailored” tariff policy towards China.
Foreign media speculate that she means the EU’s tariffs will be lower than those of the U.S.
Regarding the news that China will increase tariffs, Germany, as a major automotive nation, has been particularly cautious, fearing it will greatly affect German car manufacturers.
German Chancellor Olaf Scholz said last week, “We should not forget that European manufacturers, as well as some American manufacturers, have been successful in the Chinese market and have sold many cars produced in Europe to China.”
It is clear that this rumor has already caused some European countries to start worrying.
The “overcapacity theory” touted by the U.S. and its allies is pure nonsense. Essentially, it’s about building high walls to hinder the development of the global new energy industry chain.
They claim to protect the environment and combat climate change while simultaneously restricting China’s new energy industry, which is clearly a “double standard.”
Moreover, the U.S. approach is harmful to others without benefiting itself. Data shows that the additional tariffs imposed by the U.S. on China result in American consumers bearing much of the cost, spending an additional $1,300 annually.
No matter how they play the “sanction card” or impose tariffs, they cannot stop China’s progress.
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