By GONG Qian

Despite substantial divergence of opinion among the bloc, the EU has forged ahead and still finalized its hefty tariffs on electric vehicles (EVs) imported from China for a period of five years. The unwarranted move is undisguised protectionism, detrimental to the perpetrator and China-EU economic relations as a whole.

The tariffs differ depending on the automaker. For example, the duties on BYD, Geely and SAIC, three of China's leading automakers, are 17 percent, 18.8 percent, and 35.3 percent respectively, while Tesla will be slapped with individually calculated rate of 7.8 percent.

The final ruling is unreasonable and non-compliant. SAIC, which faces the highest anti-subsidy tariffs, said that the European Commission's countervailing investigation was wrong in determining subsidies and ignored key information and the company's counterarguments.

Attempting to protect local automotive brands by imposing tariffs on Chinese EVs cannot fundamentally enhance the competitiveness of European carmakers. Substantial investments and key technology advancements have now endowed Chinese EVs with a competitive edge in the global market. China's EV industry has seen leapfrog development, which enables it to provide global consumers with high-quality and cost-effective products. Meanwhile, the EU can benefit from China's advanced production capacity to boost its productivity. But the EU is resorting to trade protectionism instead of enhancing its technological innovation and upgrading the industrial chain.

The EU's move will also harm its consumers, green transition and global climate response. Trade protectionism will increase the cost of purchasing EVs for European consumers and significantly reduce their purchase willingness, hindering the global popularization of EVs. Furthermore, it is contrary to the EU's efforts to achieve its goal of cutting greenhouse gas emissions by 55 percent by 2030.

The divided argument over the tariffs also demonstrates the final ruling doesn't follow the long-term interests of the EU. In the pivotal vote on October 4, 10 EU members backed tariffs and five voted against, with 12 abstentions. Among them, EU automotive powerhouses Germany and Hungary opposed the tariffs. "We say unequivocally: tariffs are the wrong approach because they will not improve the competitiveness of the European automotive industry," IG Metall, the powerful German labor union, and employee representatives of the nation's major carmakers, said in a statement.

The imposition of the tariffs is a setback for free global trade and also for prosperity, the preservation of jobs and Europe's growth, Hildegard Müller, the head of the German Association of the Automotive Industry said in a statement, adding that the move increases the risk of a far-reaching trade conflict.

China has filed a complaint at the World Trade Organisation against the EU, according to a spokesperson from the Ministry of Commerce on November 4. Meanwhile, it has been making efforts to find a solution acceptable to both sides through dialogue and consultation to avoid escalating trade friction.

The European technical team arrived in Beijing on November 2, and the two sides have been exchanging views on price commitments based on pragmatic and balanced principles, the ministry said during a press conference.

China and the EU have complementary advantages in the green industrial chain. Only by working together can they promote the healthy development of the industry, achieve shared sustainable development goals, and make positive contributions to the global green transformation.