China has warned the UK against increasing tariffs on its electric vehicles and stated that it will take retaliatory action if these tariffs are implemented. This threat follows reports of the UK aligning with the European Union to counter China's market dominance in the electric vehicle industry.
UK's actions regarding tariffs
A spokesperson for China's Ministry of Commerce stated: "If the UK insists on imposing trade restrictions on Chinese electric vehicles, China will firmly take retaliatory action and protect the legal rights and interests of Chinese industries." These remarks come as the UK is working with its European partners to prevent the imposition of a 10 percent tariff on electric vehicles starting next year. This tariff has arisen due to strict origin rules under the Brexit trade agreement.
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Cooperation with the European Union
The UK government is also trying to engage in the EU's "made in Europe" policies, which prioritize products made in Brussels for certain funding projects. Anas Sarwar, the UK Trade Minister, said on the sidelines of the Germany-UK trade summit last week: "The more the UK and the EU cooperate and act in unison, the better it is for both sides." He also added: "The automotive sector and cooperation between the two sides are strong, but we must face the challenges posed by China's rapid expansion."
China has urged the UK to adhere to World Trade Organization rules and has warned against copying Brussels' approach, stating that tariffs on Chinese electric vehicles would be discriminatory. A spokesperson for China's Ministry of Commerce said: "China asks the UK to comply with WTO rules, think wisely, and not follow the EU." He also added that China will closely monitor developments in the UK.
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