On Tuesday, 21 May, US Secretary of the Treasury Janet Yellen warned against the lack of cooperation between the EU and Washington in countering Chinese industrial overcapacity. “If we do not respond strategically and in a united way, the viability of businesses in both our countries and around the world could be at risk”, she asserted during a visit to Frankfurt.
The United States announced a significant increase in tariffs on several Chinese products, including electric vehicles and semiconductors (see EUROPE 13410/12).
For the EU, there is, however, no question of blindly falling into line with American decisions. During a debate organised by Bruegel on Tuesday, 21 May, President of the European Commission Ursula von der Leyen asserted that the European approach was different and absolutely in line with international trade rules.
The anti-subsidy investigation into Chinese electric vehicles will lead to provisional tariffs in the coming weeks if proof of Chinese subsidies is found. “What I expect [should be confirmed]: that such subsidies exist”, the president affirmed. She went on to clarify that the level of customs duties imposed would be calculated based on the extent of the damage, in accordance with WTO rules. (Original version in French by Léa Marchal)