Continuing the electric car war, China launched a new move that could "inflame" tensions with the EU.

China's Ministry of Commerce said it is reviewing complaints from representatives of the country's machinery industry against "biased practices" from the European Union (EU) - a new move that is expected to further "fuel the fire" in the already tense relationship between the two sides after the EU imposed high tariffs on Chinese electric vehicles.

China-EU relations are extremely tense after the bloc decided to impose high tariffs on electric cars made in China. (Source: Bloomberg)

China's Ministry of Commerce spokesman He Yadong said on June 28 that the ministry had received an official petition from the China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCME), a semi-official trade body that protects the interests of Chinese automakers and solar panel makers.

Accordingly, the agency has asked the government to investigate what businesses in the country consider to be trade barriers disguised under the guise of anti-subsidy investigations.

Beijing's investigation could lead to "tit-for-tat" measures soon, He Yadong added, adding that the measures are underway and details will be announced in due course.

The announcement on June 27 marks the latest twist in a bitter trade war between China and the EU after the bloc announced import tariffs of up to 48% on Chinese-made electric cars in the middle of this month.

The world's second-largest economy immediately responded by launching an anti-dumping investigation into European pork.

“We are paying close attention to the EU’s anti-subsidy regulations. These regulations have had a huge impact on Chinese companies exporting to and investing in the bloc. We have repeatedly expressed our dissatisfaction and strong opposition,” said a representative of the CCCME.

The CCCME issued a press release on June 12 expressing “strong opposition” to the EU’s anti-subsidy duties – up to 38% starting July 4 – on three Chinese electric vehicle makers.

The agency also publicly questioned the results of Brussels' investigation, saying the process was “fraught with flaws” and claiming the European Commission (EC) had failed to follow typical sampling methods, name sources or publish comprehensive data related to the EU electric vehicle sector.

China, through its subsequent investigation into pork imports, has raised allegations of “overcapacity” and excessive subsidies – a response to accusations against the country from Western leaders.

The accusations come after a meeting last week between Chinese Commerce Minister Wang Wentao and Valdis Dombrovskis, the EC's Executive Vice President and European Trade Commissioner, where the two are negotiating the details of the EU's anti-subsidy investigation into Chinese electric vehicles.

“Currently, working groups from both sides are maintaining close communication and pushing forward negotiations,” He Yadong revealed.

He added that EU-China cooperation needs to be “mutually beneficial” and “complementary”, with both sides having “plenty of room” to work together on the green transition.

“Both sides should avoid trade conflicts that could negatively impact bilateral trade and investment,” he said.

Source: https://baoquocte.vn/noi-tiep-cuoc-chien-xe-dien-trung-quoc-tung-dong-thai-moi-co-kha-nang-thoi-bung-cang-thang-voi-eu-276728.html