China hits back at EU tariff hike on electric vehicles

China has decried an EU decision to hike tariffs on Chinese electric vehicles as "a blatant act of protectionism".

The European Commission, the EU's executive arm, said that starting from early July, it would impose provisional tariffs that would slap Chinese automakers with additional duties as high as 38%, up from the current level of 10%, if talks with China do not lead to an effective solution.

Chinese Ministry of Commerce spokesperson He Yadong blasted the move on Thursday.

“It will not only damage the legitimate rights and interests of China's electric vehicle industry, disrupt the mutually beneficial cooperation between China and Europe in new energy vehicles, but also will distort the global automotive industry and supply chains, including those of the EU,” he said at a weekly press briefing.

"It is a blatant act of protectionism," he added.

The EU Commission said an investigation it opened last year found that the Chinese electric vehicle industry “benefits from unfair subsidisation, which is causing a threat of economic injury to EU (battery electric vehicle) producers.”

The proposed extra tariffs would vary by company. BYD would face an additional 17.4% charge; Geely, which owns Sweden's Volvo, would be hit with a further 20%, while SAIC it would face a rate of 38.1%.

He said China reserves the right to present the case to the World Trade Organization and will take “all necessary measures to safeguard the legitimate rights and interests of Chinese enterprises”.

US President Joe Biden recently imposed major new tariffs on Chinese electric vehicles, advanced batteries, solar cells, steel, aluminium and medical equipment.

Biden said that Chinese government subsidies ensure the nation’s companies don’t have to turn a