Beijing — The European Commission’s decision to move forward with substantial tariffs on Chinese-made electric vehicles (EVs) risks unraveling decades of cooperation between China and the European Union (EU) and may jeopardize global climate targets, according to a statement by China’s state-run news agency, Xinhua, on Saturday.
Despite opposition from Germany, the EU’s largest economy, the Commission announced on Friday that it would press ahead with tariffs as high as 45% on Chinese-manufactured EVs. The move has ignited the most significant trade dispute between Brussels and Beijing in over a decade.
In a pointed critique, Xinhua condemned the EU’s action, describing it as evidence of “a deep-seated protectionist impulse” that could escalate into a full-blown trade war. “Instead of fostering cooperation,” the agency stated, “these tariffs risk igniting a conflict that could damage not only China-EU relations but also Europe’s own ambitions for a green transition.”
The report emphasized that cooperation is vital for addressing global challenges like climate change and argued that the EU’s tariffs would hamper those efforts. “The path forward is clear: protectionist tariffs must be abandoned in favor of continued negotiations,” Xinhua urged.
Soaring Chinese EV Imports Prompt EU Action
In recent years, the European market has seen a surge in imports of Chinese-made EVs, stirring concerns among European automakers who fear that the influx of cheaper Chinese vehicles could lead to severe losses for domestic producers. To counter what it perceives as an uneven playing field, the European Commission, following a yearlong investigation into Chinese subsidies, proposed the new duties, which are scheduled to take effect next month and remain in place for five years.
The tariffs are intended to offset what the EU views as unfair government support that gives Chinese EV makers an artificial competitive edge. The Commission also signaled that despite moving ahead with the tariffs, it remains open to further negotiations with Beijing. A potential compromise could involve establishing minimum sales prices for Chinese-made EVs sold in Europe.
China’s Fierce Rebuttal and Retaliatory Moves
China’s Ministry of Commerce has strongly condemned the planned tariffs, labeling them as “unfair, non-compliant, and unreasonable.” In response, China has taken its grievances to the World Trade Organization (WTO), challenging the legality of the EU’s proposed measures.
In what is widely seen as a retaliatory maneuver, Beijing has launched investigations into imports of key European goods, including brandy, dairy, and pork products. These countermeasures come amid increasing trade tensions between the two economic giants.
A Green Transition at Risk
The dispute between the EU and China, two of the world’s largest trading partners, carries broader implications beyond just economic interests. The escalation of trade barriers could disrupt efforts to combat climate change, a goal that both sides have publicly prioritized. The tariffs threaten to slow the adoption of electric vehicles across Europe, complicating the continent’s transition to greener energy sources.
While the United States already imposes a 100% duty on imported Chinese EVs, the EU’s decision marks a significant escalation in its trade policy with China. It also risks destabilizing global EV supply chains at a time when reducing carbon emissions and combating climate change is a shared global priority.
As both sides dig in, experts warn that the dispute could lead to long-term damage if a diplomatic solution is not found. “This is more than a trade issue—it’s about the future of green innovation and global cooperation,” said one analyst. The coming months will be critical in determining whether the EU and China can reconcile their differences or if this growing rift will push them further apart.
