Electric car manufacturers demand counterattack in Beijing

Chinese automakers have urged Beijing to raise tariffs on imported European gasoline cars in retaliation for Brussels’ export restrictions on Chinese-made electric vehicles, the state-backed Global Times newspaper reported yesterday.

In a closed meeting on Tuesday, which was also attended by European car companies, the Chinese auto industry called on the government to take decisive countermeasures and suggested that an increase in provisional tariffs on gasoline vehicles with large-displacement engines be positively considered, the report said.

The meeting, organized by China’s Ministry of Commerce, was held in Beijing and attended by SAIC, BYD (1211), BMW, Volkswagen and Porsche, two people familiar with the matter said.

The main aim of the meeting is to put pressure on Europe and lobby against the tariffs Brussels announced last week to protect its auto industry from Chinese competition, they added.

Industry insiders say both Europe and China have good reasons to want to reach an agreement in the coming months to ease tensions and avoid billions of dollars in additional costs for Chinese electric vehicle makers, as the EU process allows for review.

The European Commission announced yesterday that it was examining the situation “to discuss whether a solution acceptable to both sides can be found”.

On June 12, the country announced it would impose anti-subsidy tariffs of up to 38.1 percent on imported Chinese electric vehicles starting in July.

Reuters and Bloomberg