China has declared its intention to take all necessary actions to safeguard its rights following the announcement of significant tariffs on imports from the United States. The move comes in response to US President Joe Biden's decision to impose hefty tariffs on electric vehicles (EVs) and various other goods originating from China.
The Chinese foreign ministry spokesperson emphasized that China strongly opposes the unilateral imposition of tariffs that violate World Trade Organization rules. The tariffs will impact a range of products, including steel, aluminum, legacy semiconductors, battery components, critical minerals, solar cells, cranes, and medical items.
Notably, tariffs on EVs imported from China will surge from 27.5% to 100%, a strategic move aimed at challenging China's practice of promoting artificially low pricing by domestic EV manufacturers while imposing a 40% tariff on US car imports.
Furthermore, the new tariffs will also affect solar components, with a rate of 50%, while other targeted imports will face tariffs of 25%. These tariffs are set to be phased in over the next two years.
China's substantial global trade surplus, nearing $1 trillion, has raised concerns and tensions with the US and Europe. There are fears that China may be addressing an overcapacity issue in its slowing economy by flooding global markets with subsidized products.
The upcoming summit of the Group of Seven developed economies will include discussions on how to safeguard their industries in light of these trade dynamics.
Responding to inquiries, the Chinese spokesperson highlighted that China's advancements in the new energy sector, encompassing EVs, lithium batteries, and photovoltaic products, are the result of continuous technical innovation, robust industrial and supply chains, and healthy market competition.
The spokesperson emphasized that China's competitive edge is derived from comparative advantages and market principles, rather than subsidies, underscoring the country's commitment to fair market practices.
