In the afternoon of May 23rd, the Ministry of Commerce held its routine press conference. A media outlet inquired about reports suggesting that China is considering imposing tariffs on imported cars with large displacements, specifically those above 2.5 liters, as retaliation against restrictions imposed by European and American countries on Chinese automobile exports. Can you confirm this? Is China contemplating raising tariff rates?
In response, the spokesperson for the Ministry of Commerce, He Yadong, stated, "We have noticed the relevant reports. China is firmly committed to the path of green and low-carbon development, always encouraging and supporting industries to transform and upgrade towards green and low-carbon directions to achieve high-quality development. Experts in various fields, including the automotive industry, are conducting research on this matter and providing suggestions for addressing global climate change."
He Yadong emphasized, "What I want to stress is that certain countries and regions, deviating from the concept of green development, violating the principles of market economy and rules of the World Trade Organization, have introduced some restrictive measures in the field of new energy vehicles. We believe that these measures will only harm the interests of their own consumers and affect global efforts in green transformation and climate change mitigation."
According to publicly available data, in 2023, China imported approximately 250,000 cars with engine displacements greater than 2.5 liters, accounting for 32% of the total imported cars, with large-displacement engine cars also constituting 80% of China's consumption of such vehicles. If temporary tariff rates are raised, it would significantly impact cars imported from the European Union and also affect those imported from the United States. According to World Trade Organization rules, China could consider raising the temporary tariff rate for imported gasoline cars and SUVs with engine displacements greater than 2.5 liters up to 25%.
