China is urging the Czech government to take a proactive role in addressing the European Union’s recent trade measures on electric vehicles (EVs).
A Path to De-Escalate
According to a press release from the Czech Ministry of Commerce, reported by Bloomberg and Agerpres, the Chinese government hopes to find a path to de-escalate a trade dispute that erupted after the EU announced plans for additional tariffs on Chinese EV imports.
Just last week, the European Union approved new tariffs of up to 45% on EVs imported from China, a decision aimed at countering what Brussels calls “unfair subsidies” that allow Chinese EVs to enter the European market at lower prices, according to Digi24.
Ling Ji, China’s Deputy Minister of Commerce, voiced the government’s concerns over these tariffs during a recent meeting with a Czech delegation visiting Beijing.
Ling expressed China's interest in strengthening trade ties with the Czech Republic, including collaboration on energy and technology imports from the European country.
8% of EU Market
Chinese EV brands have recently gained significant ground in Europe, posing a competitive challenge to European automakers.
In 2019, Chinese EVs represented less than 1% of the EU market; now, that share has surged to 8%, and the EU Commission estimates it could reach 15% by 2025.
Chinese EVs often cost about 20% less than their European counterparts, largely due to what the EU alleges are government-backed subsidies, lower-cost materials, and favorable financing terms.
In response, Beijing has launched its own investigations into European imports of goods like cognac, dairy products, and pork, signaling potential retaliatory measures.
China has also challenged the EU’s tariff decision at the World Trade Organization, arguing that such tariffs unfairly limit Chinese companies' access to the European market.
