China Calls for Increased Gasoline Car Taxes in Response to EU Electric Vehicle Tariffs

In response to the European Union’s (EU) imposition of higher taxes on Chinese electric vehicles, car manufacturers in China are calling on the government to increase import taxes on gasoline cars. The goal of this meeting organized by China’s Ministry of Commerce is to put pressure on Europe and address the trade tensions between the two countries.

During the meeting, Chinese auto businesses and European car manufacturers discussed the proposal to raise import taxes on large gasoline cars with engine capacities of 2.5 liters or more to 25%. Currently, these vehicles are subject to an import tax of 15%. German car manufacturers, who contribute significantly to China’s economy through vehicle exports, are particularly affected by this proposed tax increase. Germany is the largest exporter of such vehicles to China.

However, some experts believe that increasing import taxes unilaterally could be unfair and that Chinese officials have already implemented policies to address excess technology. Concerns about flooding cheap goods from China into Europe due to its growth model have led to more protectionist trade policies. The European Commission is currently evaluating the situation and exploring solutions.

In response, Chinese officials have hinted at possible responses, including investigations into anti-dumping on pork and other byproducts imported from Europe. However, there is a push for cooperation and constructive dialogue between China and Europe to resolve trade tensions and promote peace and prosperity through free trade based on WTO rules.