KATHMANDU: China has started anti-dumping investigations on some products imported from the European Union, increasing trade tensions after the EU imposed higher tariffs on electric vehicles made in China, according to Reuters.
The move comes after the EU imposed higher import taxes on electric vehicles made in China. In July, the EU announced provisional tariffs of up to 37.6 percent, saying Chinese EV makers receive government support that allows them to sell cars at lower prices in Europe.
China’s commerce ministry said the investigations are a response to these EV tariffs. The probes do not directly target European cars, but they are connected to the wider dispute over the fast-growing electric vehicle market.
China is the world’s largest producer of electric vehicles, and Europe is one of its major export markets. The EU tariffs are expected to make China-made EVs more expensive in Europe, which could slow their sales.
For the auto industry, the dispute adds uncertainty. European carmakers selling vehicles in China and Chinese EV brands expanding in Europe could face higher costs and more trade barriers if tensions continue.
The developments show how competition in the global electric vehicle market is increasingly shaping trade relations between major economies.
