CHINA charged the United States with engaging in protectionist trade measures amid signs that Washington is prepared to step up efforts to keep Chinese electric vehicles (EVs) from penetrating the American market.

“In recent years, the US has imposed high tariffs on Chinese automobiles and restricted Chinese cars” from government procurement contracts, China’s Ministry of Commerce said on Monday (Mar 4). “Now, under the guise of national security, it intends to set up non-tariff barriers. This is classic protectionism.”

The comments come after the US Commerce Department said last month, that it will investigate potential data and cybersecurity risks posed by Chinese EVs and other internet-connected cars.

Chinese auto companies currently have a very limited presence in the US because of a 27.5 per cent tariff imposed by former president Donald Trump. The Biden administration is considering hiking those duties even higher, but officials are worried that tariffs alone will not be enough to keep Chinese cars out of the country, Bloomberg has reported. The concern is that Chinese shipments will simply re-route through third countries or that Chinese firms will set up operations in places like Mexico that have advantaged access to the US market.

China will continue to monitor the situation and take “forceful” measures to safeguard its legitimate rights and interests when necessary, the Ministry of Commerce said.

Europe’s worry

The US is among developed nations worried over the competitive danger to their own industries from China, which became the world’s biggest auto exporter last year. BLOOMBERG

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