France says EU trade war with China threatened

A group of members of the European Parliament (EP) from France reported on the threat of a trade war of the European Union (EU) with China in connection with possible retaliatory measures of Beijing to the introduction by Brussels of tariffs on electric cars from China. This is stated in the appeal of MEPs to the European Commission (EC).

The MPs recalled that on October 29, the EC adopted a resolution to raise tariffs to 35% on electric cars imported from China in order to restore normal competition with Chinese manufacturers, which receive huge subsidies from Beijing.

"The announcement drew disapproval from the Chinese government, which responded by announcing possible tariffs on EU agricultural products, including cognac. The cognac sector exports 97% of its production, of which 31% goes to the Chinese market. This means that the industry risks becoming a victim of a trade war between the EU and China," Lenta.Ru quotes the text of the appeal of parliamentarians.

In this regard, the MPs urged the European Commission to take into account the consequences of China's retaliatory measures against cognac and brandy from the EU and asked it how it intends to respond to the situation, writes Pravda.Ru.

Earlier, on December 10, Chinese President Xi Jinping urged the US to normalize bilateral relations and avoid a trade war, as "there will be no winners in it," RT reports. He noted that "tariff, trade and science and technology wars go against the trends of history and the laws of economics," 360.ru reported.

On September 15, it was reported that leading Western global brands have dominated the Chinese market for many years, but now their leadership is threatened by the rise of Chinese electric car makers such as BYD and Xpeng. These companies have changed the market significantly, overtaking Volkswagen, Ford and General Motors. Due to the increase in Chinese electric car production, Volkswagen first announced the possible closure of plants in Germany.

In late August, it was reported that the Canadian government would impose 100 percent duties on imports of electric cars that were manufactured in China.

Earlier in July, the European Commission announced it would impose duties on Chinese electric cars ranging from 17.4-37.6 percent, the tariffs were applied following an investigation to counter "illegal subsidies" that Beijing allegedly provides to Chinese automakers.