The Ministry of Commerce (MOFCOM) Photo: VCG

The Chinese Ministry of Commerce (MOFCOM) on Thursday urged the EU to refrain from weaponizing tariffs, eliminate market barriers, encourage fair competition, follow the general trend of industrial cooperation, and jointly create a fair, non-discriminatory and predictable market environment for industrial development.

A MOFCOM spokesperson made the remarks when asked to comment on the EU's vigorous development of its electric vehicle (EV) industry while still imposing anti-subsidy duties on Chinese EVs, after Volkswagen Group announced that it will launch the ID.1 small EV with a price of 20,000 euros (23, 643.50), and at the IAA MOBILITY 2025, many EU automakers such as BMW, Mercedes-Benz, and Renault also released new-energy strategies and concept cars.

In response, He Yadong, the MOFCOM spokesperson, said that the Chinese side has noted the relevant reports, and congratulates EU automakers on their upcoming launch of compact EVs priced around 20,000 euros, which meet market demand and consumer expectations. 

EU consumers demand a wider range of products with more advanced performance and more affordable prices, and Chinese EVs are driving the industry's electrification and intelligent transformation, while EU automakers are fully capable of adapting to market competition and participating in this industry transformation, the spokesperson noted.

Furthermore, the exceptional cost-effectiveness driven by technological innovation and full-industry-chain collaboration is the fundamental logic behind the development of the EV industry. At the same time, it is the core reason why Chinese EVs are widely embraced by consumers and a driving force for the global response to climate change, including in the EU, He said.

"The EU cannot hold high the banner of tackling climate change on one hand and wield the stick of protectionism on the other. Protectionism leads nowhere," the spokesperson said, noting that simply because Chinese EVs offer high cost-effectiveness, the EU side has groundlessly labeled Chinese automakers as "subsidized" and abused anti-subsidy measures under the pretext of unsubstantiated "threats of injury." In essence, this constitutes market barriers and interferes with free competition, the spokesperson said.

"Practice has shown that protectionism cannot withstand the powerful forces of the market, much less block the rational choices of EU consumers," He said. 

The spokesperson further stressed that cooperation is the right path. "We welcome EU companies' products to enter the Chinese market and are even more willing to promote cooperation in the EV sector."

He noted that collaborations like those between Volkswagen and Xpeng, and between Stellantis and Leapmotor, are stimulating innovation in the EU market, and Chinese batteries are also injecting strong momentum into EU EVs. "These efforts fully demonstrate the inherent demand and strong resilience of the deep integration of the Chinese and EU EV production and supply chains," He said.

China hopes that the EU will not weaponize tariffs, but will eliminate market barriers, encourage fair competition, follow the general trend of industrial cooperation, and jointly create a fair, non-discriminatory and predictable market environment for industrial development, so as to make positive contributions to addressing global climate change and achieving green transformation, the spokesperson said.

Global Times