According to the EC, subsidies pose a threat to EU (especially German – editor's note) car manufacturers. The EC informed that it had asked the authorities of the People's Republic of China to reach an agreement on this issue. If talks with Beijing do not end with an agreement, temporary tariffs will be introduced from July 4, PAP reports. At the same time, the Chinese Ministry of Commerce has already announced that in retaliation for possible EU tariffs on electric cars, it will introduce mirror instruments on the import of agri-food products from the EU.
Imposing additional duties on Chinese electric vehicles is "contrary to the principles of market economy and international trade, undermines Sino-EU economic and trade cooperation, as well as the stability of global car production and the supply chain," said Lin Jian, spokesman for the Ministry of Foreign Affairs, quoted by PAP, during Wednesday's press briefing . The statements by the Ministry of Foreign Affairs and the Ministry of Commerce said that "China will take all necessary measures to resolutely protect its legitimate rights and interests," but did not specify what those measures would be.
On the one hand, the European Union is the largest recipient of Chinese electric vehicles and accounts for almost 40 percent of these exports, on the other hand, EU food producers, including Polish ones, are committed to trying to enter the Chinese market more and more strongly. Therefore, EU Commissioner for Agriculture Janusz Wojciechowski appealed for food to be excluded from the current economic tensions between China and the EU.
– China is a very important partner for the EU, the third importer of our products – Janusz Wojciechowski told Euractiv, adding that despite the positive trade balance with Beijing, there is a possibility of increasing the value of EU exports to this country.
China's response may hit EU exports of agricultural products
According to the Global Times, although there is no specific response from China yet, pork and dairy products may be the first to go. The Chinese government is considering initiating anti-dumping proceedings regarding the import of both of these products. The value of exports in 2023 was almost EUR 5 billion, i.e. one quarter of EU agri-food exports and 2 percent of total exports to the Middle Kingdom. It should also be noted that the Chinese market is crucial for the European pork sector.
