EU taking wrong path of protectionism by imposing hefty tariffs on Chinese EVs

In a sign of the European Union resorting to rising protectionism, the 27-member bloc on Tuesday formally approved the imposition of hefty extra tariffs of up to 35 percent on imports of Chinese-made electric vehicles starting Wednesday, based on the results of a probe that the EU claims indicates Chinese government subsidies have unfairly undercut European automakers.

Chinese car giant Geely — one of the country's largest sellers of EVs — now faces an extra duty of 18.8 percent, while SAIC will be hit with the highest at 35.3 percent, on top of the current 10 percent on imports of EVs from China. Other EV producers in China including Western companies such as Volkswagen will be subject to duties of 20.7 percent, according to the final ruling of the European Commission. The tariffs will be definitive and last for five years.

Despite the EU trying to justify the protectionist move targeting Chinese auto companies by describing it as "fair market practices" aimed at safeguarding the European industrial base, it cannot change the fact that the so-called anti-subsidy probe did not comply with the World Trade Organization rules. Moreover, the levying of extra duties will inevitably disrupt the stability of the global auto manufacturing supply chains and harm the interests of European consumers.