Beijing: US Wrongly Increases Chinese Electric Car Import Tariffs 100 Percent

Chinese Foreign Ministry Spokesman Wang Wenbin. ANTARA/Desca Lidya Natalia

JAKARTA - Chinese Foreign Ministry spokesman Wang Wenbin said the United States (US) had mistakenly raised the import rate of electric cars from China by up to 100 percent.

"It is another mistake for the US to continue to politicize trade problems and further increase tariffs on Chinese products. This will only significantly increase the price of imported goods," Wang Wenbin said as quoted by ANTARA, Wednesday, May 15.

On Tuesday (14/5), the White House said President Joe Biden decided to raise the import rate of goods from China worth 18 billion US dollars (approximately IDR 286.9 billion) under Article 301 of the 1974 Trade Act to protect US workers and businesses.

Electric vehicle rates based on Article 301 will increase from 25 percent to 100 percent in 2024. The reason is because of the large number of subsidies and non-market practices that cause a large risk of overcapacity, Chinese electric vehicle exports will grow to 70 percent in 2022-2023 which is considered to endanger productive investment in other countries so that 100 percent tariffs are expected to protect US producers from unfair trade practices by China.

"This tariff causes more losses to US companies and consumers and makes US consumers pay even more," said Wang Wenbin.

Wang Wenbin, citing financial consultant Moody's, said 92 percent of the fare increases borne by US consumers and the average US household spending increases by 1,300 US dollars per year.

"US protectionist actions will further undermine the security and stability of the industrial chain and global supply. We note that some European political leaders say that in terms of tariffs, dismantling global trade is a bad idea," added Wang Wenbin.

Wang Wenbin asked the US to seriously comply with WTO regulations and immediately cancel additional rates against China.

"China firmly opposes the implementation of unilateral tariffs by the US in violation of WTO rules and will take all necessary measures to defend our legitimate rights and interests," said Wang Wenbin.

Semiconductors, batteries and battery packaging, several steel and aluminum products, various minerals and ore from manganese to cobalt, as well as radioactive substances into goods that will be affected by the increase in import costs.

Medical equipment such as respirators and face masks as well as syringes is also included in the list, where most of these items have been free of import rates.

According to the White House, China's government has been using unfair non-market practices for too long, such as forced technology transfers and intellectual property theft by China has contributed to China's control of 70, 80, and even 90 percent of global production for essential materials needed for technology, infrastructure, energy, and health services creating unacceptable risks to US supply chains and economic security.

In addition, the same non-market policies and practices contributed to the increase in overcapacity and the surge in exports in China which threatened to significantly harm US workers, businesses, and society.