China meets OEMs to discuss import tariffs on large cars ahead of EU tariff vote

China's Commerce Ministry met with automakers and industry associations on Friday to discuss raising import tariffs on large-engined gasoline vehicles, sounding a warning as the European Union nears a tariff decision on Chinese electric cars. The 27-strong bloc is due to vote in October on whether to adopt additional duties of up to 36.3 per cent on Chinese-made electric vehicles on top of its standard 10 per cent import tariff.

The EU on Tuesday revised down the proposed duties from the 37.6% rate set in July but stopped short of abandoning them to Beijing's dismay.

On Wednesday, China hit back by announcing it had widened its investigations into imported EU products by adding an anti-subsidy probe of various cheese, milk and cream goods to anti-dumping checks on pork and brandy.

In a statement on Friday, the Commerce Ministry said officials had "listened to the opinions and suggestions of industry, experts, and scholars on raising the import tariffs on fuel-powered cars with large displacement engines."

Representatives of relevant industry associations, research associations, and automakers joined the meeting, it added.

State-owned tabloid Global Times, which first reported the investigations into European pork and dairy, in June also raised the prospect of China raising its import tariff on large-engined gasoline cars.

Doing so would hit Germany hardest. Its exports of vehicles with engines of 2.5 litres or larger to China were worth $1.2 billion last year, Chinese customs data shows.

China has been canvassing member-states to counter the EV tariffs, as the European Commission, which oversees the bloc's trade policy, cannot implement the duties if a qualified majority of 15 EU members representing 65% of the EU population vote against them.

Germany, along with Finland and Sweden, abstained from a July advisory vote on whether to back the tariffs' permanent adoption, sources have said.

France, Italy and Spain backed the proposed tariffs, and are among those that would be most affected by any punitive duties resulting from China's growing number of trade investigations.

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