Chinese Government slams plans to introduce costly tax on affordable electric vehicles
The Chinese Government has criticised plans to introduce a tax on electric cars built in the country, stating it could cause future trade frictions.
The Chinese Government has hit back over the European Union's plans to impose a tariff on electric vehicles that are built in the country.
The stern address came after the EU announced that it is considering introducing a tax of up to 48 percent on cars and vans that are made in China in order to protect local industry.
Speaking at a press conference, Lin Jian, a spokesperson for the Chinese Foreign Ministry, called on the European Union to avoid imposing the tariff on vehicles built in the country.
He advised: "We urge the EU to listen carefully to the objective and rational voices from all walks of life, immediately correct its wrong practices, stop politicising economic and trade issues, and properly handle economic and trade frictions through dialogue and consultation."
Whilst the EU's proposed tariff will not directly affect the price of Chinese cars in the UK, some industry experts are predicting that a similar tax may be introduced in the near future.
The European Union's plans are the result of a nine-month investigation into how damaging the threat of affordable Chinese electric cars would be on local industry.
The authority warned that, if talks with China do not lead to a solution, they would introduce a tariff based on the size of the subsidy each car brand receives from the Chinese government, with a maximum figure of 48.1 percent.
If the tariff comes into effect, MG and Maxus would be the worst affected brands, with prices increasing on all electric models by 38 percent.
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Despite being the world's biggest producer of passenger cars, building more than 30 million in 2023 alone, the majority of Chinese vehicle manufacturers have only recently gone on sale in the UK.
However, despite not having the identity of western alternatives, brands such as MG, BYD and GWM Ora are proving popular, largely due to their competitive prices.
With plans to bring even cheaper electric models to the UK market, such as the sub-£20,000 BYD Seagull, a number of Governments in Europe and America are concerned that the Chinese car industry could soon outperform more locally-produced alternatives.
A spokesperson for the vehicle retailer Brindley Group noted that one of the biggest advantages Chinese-made cars have over western alternatives is value for money.
They explained: "The main draw of Chinese vehicles is that they offer premium quality at budget-friendly prices, making it a no-brainer, particularly when money is tight.
"Just because they're cheaper doesn't mean they compromise on quality, with consumers assuming that these cars cost considerably more than they do."
