China Mulls Higher Tariffs on Large-Engine Vehicles to Promote Green Transition
BEIJING, Aug. 29 (Xinhua) – China’s Ministry of Commerce (MOC) has announced it is considering raising tariffs on large-engine gasoline vehicles, a move seen as part of the country’s ongoingefforts to promote a green and low-carbon transition in the automotive industry.
MOC spokesperson He Yadong confirmed the ministry’s intention to carefully study proposalsfrom industry experts and stakeholders regarding the potential tariff increase. We support the green and low-carbon transformation of the automotive industry, He said at a press conference on Wednesday.
The move follows a recent suggestion from experts who argued that raisingtariffs on large-engine gasoline vehicles aligns with World Trade Organization (WTO) rules and would benefit the country’s automotive industry by encouraging the adoption of more fuel-efficient and environmentally friendly vehicles.
On August 23, the MOCconvened a meeting to gather input from industry representatives, think tanks, research institutions, and businesses on the proposed tariff increase. The ministry will now review the collected feedback and determine the next steps in the process.
The potential tariff increase comes amidst a global push for cleaner transportation and a shift towards electric vehicles. China, amajor automotive producer and consumer, has been actively promoting the development and adoption of electric vehicles (EVs) through various policies and incentives.
This move also follows the recent conclusion of the European Union’s (EU) anti-subsidy investigation into Chinese electric vehicles. The EU’s final ruling imposed high anti-subsidy taxes on imported EVs from China, a decision that the MOC has condemned as protectionist and detrimental to the stability of the global automotive supply chain.
He Yadong criticized the EU’s decision, stating that it is a typical protectionist act that is not conducive to China-EU automotive industry cooperation,the stability of the global automotive production and supply chain, the EU’s green transformation, or global efforts to address climate change.
The potential tariff increase on large-engine gasoline vehicles is seen as a strategic move by China to further incentivize the transition towards cleaner vehicles and reduce reliance on fossil fuels. It also reflectsthe country’s commitment to achieving its ambitious climate goals and promoting sustainable development.
While the specific details of the proposed tariff increase remain unclear, the MOC’s announcement signals a clear intention to actively shape the future of the Chinese automotive industry by promoting a green and low-carbon transition. The move is likely to havesignificant implications for both domestic and international automotive manufacturers operating in China.
Background:
- China is the world’s largest automotive market and a major producer of both gasoline and electric vehicles.
- The country has set ambitious targets for reducing carbon emissions and promoting green development.
- The government has implemented arange of policies to support the development and adoption of electric vehicles.
- The EU’s anti-subsidy investigation into Chinese electric vehicles has raised concerns about protectionism and trade tensions.
Implications:
- The potential tariff increase could lead to higher prices for large-engine gasoline vehicles in China.
*It could incentivize manufacturers to invest in the production of more fuel-efficient and electric vehicles. - It could further strengthen China’s position as a global leader in the electric vehicle market.
- It could contribute to the country’s efforts to achieve its climate goals.
Conclusion:
China’sconsideration of raising tariffs on large-engine gasoline vehicles is a significant development that reflects the country’s commitment to promoting a green and low-carbon transition in the automotive industry. This move is likely to have a ripple effect across the global automotive landscape, influencing both manufacturers and consumers. The outcome of this policy decision will beclosely watched by industry stakeholders and observers alike.
【source】http://www.chinanews.com/cj/2024/08-29/10276738.shtml
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