After challenging the US, BRICS member China is now confronting the European Union (EU) for a possible ‘trade war’. Europe is placing tariffs on China over electric vehicles (EVs) and the move has not gone down well with Beijing.
BRICS member China warned that the escalating frictions on tariffs could trigger a trade war with the European Union. For the uninitiated, the EU has proposed hefty duties on Chinese imports of electric vehicles. China has criticized the measures of the European Union claiming that the duties levied are excessive and need subsidies instead.
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BRICS: EV Tariffs Could Trigger Trade War Between China & the European Union
China and the BRICS alliance is pulling its weight against the US and the European Union over trade and commerce. The warning comes at a time when Germany’s Economy Minister Robert Habeck visited China on a 3-day visit from Monday.
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BRICS country China warned that the onus to settle the hefty duties on imported EVs is solely the European Union’s responsibility. Failing to adhere with, a new trade war could be waged with the EU that initiates tit-for-tat tactics.
“The European side continues to escalate trade frictions and could trigger a trade war,” said a Chinese commerce ministry’s spokesperson. “The responsibility lies entirely with the European side,” he said. The advice comes at a time when BRICS is looking to challenge the US, European Union, and other Western allies. The ministry also said that China and BRICS will not be “intimidated and coerced” by the European Union.
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Read here to know how many sectors in the US will be affected if BRICS ditches the dollar for trade. China is advancing in its de-dollarization quest by convincing other developing countries to use local currencies for cross-border transactions. In addition, BRICS is also arm-twisting the European Union to agree with their trade demands.