China has been called on to raise its import tariffs on large petrol-powered cars to 25% – as the country faces sharply higher U.S. auto import duties and possibly additional duties to enter the European Union.
Government-affiliated auto research body expert Liu Bin was speaking to China’s Global Times newspaper
Liu Bin, chief expert of China Automotive Technology & Research Center (CATARC), says a tariff rate of 25% is in line with World Trade Organisation rules.
China’s current import tariff for cars is 15%.
Reuters reports that following his comments, shares of BMW and Mercedes were among the biggest weighted drags on some markets.
A higher duty for cars with larger engines would hit principally German carmakers that export SUVs and sedans to China.
“We also noticed that certain countries and regions have taken restrictive measures in the new-energy vehicle sector, which run counter to the green development concept and violate market economy principles and WTO rules,” Liu was quoted as saying.
The United States has unveiled steep new U.S. tariffs on an array of Chinese imports, including electric vehicles.
The European Commission is investigating China-made EVs, which is expected to lead to additional duties.
Liu says the recommended tariff hike will accelerate the green transition and is fundamentally different from protectionist measures elsewhere.
There has been fierce competition between Chinese and American automakers.

Able to produce far more cars than they can sell in China, Chinese companies like BYD are entering markets all over the world.
Their global expansion comes as major U.S. carmakers have withdrawn from promising markets such as India, Indonesia and Thailand to focus on their North American base.
As Chinese manufacturers try to sell as many cars as possible to keep their workers employed, their U.S. competitors are betting on making each vehicle sale more valuable by selling consumers software subscriptions for entertainment, hands-free driving and performance upgrades.
The contrasting strategies involve risks for both sides as they approach what some analysts say is an inevitable fight for the U.S. car market.
They also underscore what’s at stake with President Joe Biden’s imposition of 100 percent tariffs on Chinese electric vehicles this past week.