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China warns EU of potential 'trade war' as tensions heighten

Friday, 21 June 2024 10:10 AM [ Last Update: Friday, 21 June 2024 10:27 AM ]

Visitors check the China made BYD ATTO 3 at the IAA motor show in Munich, Germany, on Sept. 8, 2023. (Photo by AP)

China's Ministry of Commerce has expressed concerns that the European Union's ongoing intensification of trade disputes could potentially lead to a "trade war."

The European Commission recently suggested imposing tariffs as high as 38.1% on electric vehicle (EV) imports from China, a move that has sparked objections from Beijing. The decision has strained trade relations, raising the prospect of of retaliatory measures from China, the world's second-largest economy.

"Responsibility lies entirely with the EU side," a Chinese ministry spokesperson said in a statement on Friday.

The spokesperson expressed Beijing’s desire for the EU to engage in dialogue and find a middle ground to address differences, to prevent trade friction from escalating or spiraling out of control.

The tariffs are a response to concerns from Brussels regarding Beijing's subsidies, which are believed to be negatively impacting European automakers. The tariffs will apply to EVs exported to Europe by both Chinese and foreign brands, including Tesla.

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China has announced that it would respond appropriately after the United States imposed new sanctions designed to weaken Russia’s military and industrial strength, along with targeting Chinese firms aiding Kremlin in obtaining armaments.

Friday’s statement from the commerce ministry was released approximately one hour prior to the arrival of German Economy Minister Robert Habeck in Beijing.

During his visit, Habeck is anticipated to clarify the recent tariff announcement to Chinese officials and address any concerns of potential retaliation from China that may negatively impact German businesses.

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