China is considering raising tariffs on some car imports, according to a prominent business group, a move that would counter EU and US trade actions against Chinese-made electric vehicles.
In a statement on Tuesday evening, the China Chamber of Commerce to the EU (CCCEU) announced that it had been "informed by insiders that China may consider increasing temporary tariff rates on imported cars equipped with large-displacement engines".
The Brussels-based group was firming up a threat that had been reported by Global Times, a Chinese state-owned tabloid.
"This potential action carries implications for European and US carmakers, particularly in light of recent developments such as Washington's announcement of tariff hikes on Chinese electric vehicles and Brussels' preparations for preliminary measures in a high-profile anti-subsidy investigation into Chinese EVs," the chamber statement read.
The warning comes as trade ties between China and Western powers fray, with conditions expected to worsen in the weeks ahead.
Last week, Washington announced significant tariff hikes on a wide range of Chinese goods – EVs, various batteries, semiconductors and cranes, graphite and other critical minerals among them.
The European Union has embarked on a series of high-profile moves to tackle Chinese subsidies to various industries, which it says are distorting the European single market. In the most prominent case, Brussels is expected to finalise an investigation into subsidies in China's EV sector by June 6, with provisional tariffs to be applied in early July.
Beijing has indicated that it won't take either gambit lying down. On Sunday, the Chinese Ministry of Commerce announced an anti-dumping investigation into imports of polyoxymethylene copolymer – a chemical commonly used in automotive engineering – from the US, EU, Japan and Taiwan.