China Weighs Higher Tariffs on Large Engine Vehicle Imports

The Chinese government is considering a proposal to raise import tariffs on large displacement fuel vehicles, as part of its efforts to support the green transition in the automotive sector. A spokesperson for the Commerce Ministry, He Yadong, explained that the potential tariff increase would comply with World Trade Organization (WTO) rules and is aimed at promoting the green transformation of the industry. The proposal was discussed during a meeting with industry experts and scholars on August 23.

This move comes in response to the European Union’s recent announcement of countervailing duties on battery electric vehicle (BEV) imports from China, revealed on August 20. The EU’s proposed duties range from 17% for BYD, 19.3% for Geely, to 36.3% for SAIC, with other companies, such as Tesla, facing a lower 9% duty. China has yet to disclose the specific tariff rates or implementation dates for its potential increases.

China’s automobile imports fell by 2% year-on-year, totaling 400,000 units between January and July, reflecting a growing domestic market share and the country’s rapid shift towards vehicle electrification. During the same period, European exports of large fuel vehicles to China declined by 20%, reaching 88,000 units. Trade tensions have also heightened, with Canada announcing a 100% tariff on Chinese EVs starting October 15.

Meanwhile, China’s new energy vehicle (NEV) exports surged by 26% to 1.14 million units from January to July, with a notable increase in shipments to Canada.

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