China urges EU to avoid weaponizing tariffs

Beijing has called on Brussels to abandon the weaponization of tariffs and provide a truly level playing field for Chinese electric vehicle makers, while also welcoming European automakers into China, the Ministry of Commerce said on Thursday.

"China's EV industry has indeed been a driving force behind the broader transformation of the automotive sector toward electrification and digitalization," said He Yadong, a spokesman for the ministry, at a news conference.

"European manufacturers now have every capability to not just adapt to market competition, but also be part and parcel of this industry-wide revolution," said He.

As the European Union intensifies efforts to bolster its new energy vehicle sector — highlighted by Volkswagen's recent unveiling of its 20,000-euro ($23,683) model and new energy strategy rollouts from BMW, Mercedes-Benz and Renault at the 2025 Munich Motor Show — it continues to enforce countervailing duties on Chinese EVs.

He noted that the EU has groundlessly labeled Chinese automakers as "subsidized" simply due to their high cost-effectiveness, and has abused countervailing measures under the pretext of an unfounded "threat of damage".

In essence, this constitutes a market barrier and interference with free competition. Practice has proven that protectionism cannot withstand the powerful forces of the market, nor can it block the rational choices of EU consumers, the spokesman said.

"We hope that the European side will refrain from weaponizing tariffs, eliminate market barriers, encourage fair competition and follow the broader trend of industrial collaboration. Together, we can create a fair, nondiscriminatory and predictable market environment for industrial development, and make positive contributions to addressing global climate change and achieving a green transition."

Cooperation is the only way forward. China welcomes EVs from European companies into the Chinese market and is particularly eager to promote collaboration in this sector, said He.

Brussels had increased tariffs on Chinese-built EVs to as much as 45.3 percent in October last year. But Beijing and Brussels have floated the idea of lifting the tariffs through possible commitments to minimum prices, known as price undertakings for imported cars, earlier this year.

China's Ministry of Commerce said in a statement on June 7 that negotiations on a price commitment for EVs between China and the EU have "entered the final stage", though further efforts are still required from both sides.

"China and the EU exhibit strong economic complementarity, driven by China's robust manufacturing capacity and vast domestic market, alongside Europe's expertise in high-end manufacturing, services and technological innovation," said Liu Ying, a researcher at Renmin University of China's Chongyang Institute for Financial Studies.

Liu said the shared commitment of both sides to green transition offers significant opportunities to deepen cooperation, particularly in green development and the digital economy.