Worldsteel: China’s steel overcapacity won’t be easy to resolve
Edwin Basson, Director General of the World Steel Association (Worldsteel), stated that China’s long standing steel overcapacity can’t be reduced quickly, as it is deeply linked to the structure of the country’s economy.
Speaking to Bloomberg, Basson emphasized, “Shutting down a steel plant creates a chain reaction across other domestic sectors. Therefore, there is no viable short term solution.”
The steel sector was among the first targets of the import tariffs introduced earlier this year by US President Donald Trump, and many countries, including Vietnam, have begun imposing antidumping duties on Chinese steel. Basson said that this trend has reversed roughly 20 years of relative openness in global steel trade: “The open market that existed from 2000 to 2020 is now disappearing. Free movement of goods between continents is a critical issue for the sector.”
China’s demand decreases, exports reach record levels
According to Worldsteel, steel demand in China is expected to decrease by 2% in 2025 and by 1% in 2026. This decline is driving producers to export record volumes despite rising protectionism. China’s steel exports are moving toward an all-time high in 2025, with shipments exceeding 100 million tonnes in the first 11 months of the year. This momentum has also pushed the country’s total trade surplus above 1 trillion USD for the first time in history.
Meanwhile, iron ore futures in Singapore decreased by 0.9% on the first trading day of the week, falling to 102.45 USD per tonne.
A fragmented global market complicates carbon reduction
Rizwan Janjua, Head of Technology at Worldsteel, said that fragmentation in the global steel market is jeopardizing the sector’s climate goals. He noted that steel accounts for around 8% of global carbon emissions and emphasized, “Cleaning up the sector requires unprecedented levels of international cooperation. However, as markets become more divided, ensuring this coordination becomes more difficult.”
Janjua added that the technologies required for emission reduction already exist, but issues related to energy supply and policy misalignment continue to slow progress: “If everyone doesn’t act together, each country will try to optimize only its own system.”
Responsiblesteel partners with Europe and China on global low-emission steel standards
At the COP30 summit held in Belém, Brazil, following calls for greater consistency and clarity in carbon standards, Responsiblesteel announced partnerships with Europe’s Low Emission Steel Standard (LESS) and China’s Low Carbon Emission Steel Standard (C2F Steel). These two standards cover approximately 60 percent of global steel production.
Responsiblesteel’s agreements with Chinese and European steel standards expand a common approach to greenhouse gas measurement and classification, covering more than half of global steel production. The partnerships bring together producers, consumers, and innovators under harmonized definitions of low-emission steel, accelerating the sector’s journey toward deep decarbonization.
Steel accounts for around 7–9 percent of global greenhouse gas (GHG) emissions, making it one of the largest industrial contributors to climate change. The agreements strengthen efforts to facilitate trade and investment in decarbonized steel while ensuring consistency and reliability in sustainability standards worldwide.
Achieving meaningful progress in decarbonization requires collaboration across borders and standards. Today’s agreements send a strong message of global consensus to governments regarding the “scrap-variable” approach to low-emission steel classification. This approach acknowledges that recyclable steel will be limited in the coming period and is designed to promote decarbonization across all technologies.
Already recognized by the G7 and incorporated into international standards, this approach provides a practical, science-based solution supporting the global transition to low-emission steel without compromising integrity. It prevents unproductive competition for limited scrap supply, encourages decarbonization across all steel production routes, and supports technology-neutral solutions compliant with international trade rules, removing unnecessary barriers to trade.
Responsiblesteel’s greenhouse gas accounting methodology and classification system are part of the ‘International Production Standard,’ developed through a transparent, multi-stakeholder process with participation from over 180 individuals, including more than 70 business and civil society organizations and steel producers operating blast furnace (BF) and electric arc furnace (EAF) facilities, covering a broad ESG spectrum.
Responsiblesteel CEO Annie Heaton stated: “Responsiblesteel is creating a global framework that enables comparability to establish the foundation for a global market in low-emission steel. A large portion of global steel production capacity now has the potential to use equivalency mechanisms to define low- and near-zero-emission steels. These agreements pave the way for the first real examples of interoperability between standards, providing clarity for steel producers, buyers, investors, and policymakers in a groundbreaking development.”
Jiang Wei, president of the China Iron and Steel Association (CISA), emphasized: “Collaboration is essential to harmonize greenhouse gas emission standards and accelerate the decarbonization of the steel industry. This agreement is a groundbreaking step toward that goal. CISA’s decision to collaborate with Responsiblesteel reflects our mutual commitment to steel standard principles, proven results achieved by both organizations in this area, and our shared dedication to reliable, science-based solutions. We look forward to working closely with Responsiblesteel to advance the objectives of this agreement.”
LESS secretary general Carmen Ostwald stated: “LESS is proud to partner with Responsiblesteel in this groundbreaking initiative. Our shared commitment to reliable, science-based solutions will provide much-needed clarity in greenhouse gas emissions comparison and transparency in the decarbonization process of steel production. This agreement represents a critical step toward creating global markets for low-emission steel and accelerating the sector’s transition to net zero.”
Responsiblesteel board chair Gerry Tidd emphasized: “Two dominant steel-producing regions, China and Europe, play a vital role in decarbonizing the steel industry. Responsiblesteel is proud to act as a global, multi-stakeholder facilitator, using its trusted standard to help industries achieve genuine decarbonization.”
The agreements also set an example for the Steel Standard Principles (SSPs) launched at COP28. Responsiblesteel has taken a leading role in developing interoperability between standards in collaboration with more than 60 SSP signatories.
Leading industry figures and organizations also support the agreements
Philippe Aubron, global head of automotive at ArcelorMittal, stated: “ArcelorMittal strongly supports the collaboration between Responsiblesteel, CISA, and LESS to enhance interoperability between the new standards. It is essential to create a unified framework for international reference standards to accelerate steel decarbonization and provide transparency and reliability in global markets. We believe this initiative will build trust, drive innovation, and ensure the industry meets its climate commitments consistently and rigorously.”
Wang Qiangmin, chief representative for carbon neutrality at China Baowu Steel Group, stated:
“The signing of this cooperation agreement is a key milestone for the Chinese steel industry in actively applying green development principles and integrating deeply into global low-carbon emission management. We will use this opportunity to jointly promote international recognition of low-carbon steel standards, establish a green supply chain system, and contribute to the low-carbon transformation of the global steel industry with Chinese expertise and strength.”
Frederik Van de Velde, CEO of ArcelorMittal Belgium, stated: “This partnership is groundbreaking for our sector. By aligning our standards, we not only strengthen LESS and Responsiblesteel but also establish a global consensus on the definition of low-emission steel. ArcelorMittal is proud to support this initiative, which will accelerate our joint journey toward a sustainable steel sector.”
Gunnar Groebler, CEO of Salzgitter AG and chair of the LESS board, emphasized: “Aligned standards form the backbone for meaningful change in steel production. This tool ensures companies can adopt sustainable practices with confidence while providing customers with the transparency needed to make informed decisions. Mutual recognition between standards is key to building trust in the market.”
Riccardo Savigliano, head of energy systems and decarbonization at UNIDO, stated: “These agreements represent an important step toward globally harmonized standards for low- and near-zero-emission steel, which are critical for advancing decarbonization across the sector.”
Susanne Larsson, CFO and CSO of SKF, stated: “Unified, reliable, and interoperable standards are vital for making informed sourcing decisions in complex and globalized value chains like ours. These agreements will provide the market with much-needed clarity and consistency, strengthening the foundation for genuine climate action in the steel sector.”
John Haffner, deputy sustainability director at Hang Lung Properties, stated: “Carbon emissions from steel are a fundamental challenge in the real estate sector. We welcome and applaud this announcement as the first real estate company in China to join the Climate Group’s SteelZero initiative. Promoting decarbonization across all steel production routes and establishing reliable, interoperable standards will accelerate low-carbon steel production and provide clarity and momentum to demand-driven initiatives in China and beyond.”
Esther Finidori, sustainability director at Schneider Electric, stated: “Harmonizing global standards for low-emission steel is essential to scale reliable supply and sustainable trade. Decarbonizing supply chains requires standards that are harmonized, high-integrity, transparent, traceable, and measurable. We are committed to building sector coalitions, establishing long-term partnerships, and ensuring the standardization necessary to accelerate sustainable innovation.”
Mike Peirce, executive director of system change at Climate Group, stated: “This announcement is a strong example of what collaboration can achieve. By shaping standards within a common framework, these organizations are enabling greater alignment on how we measure and classify emissions in steel, a sector critical for global decarbonization.”
Sameen Khan, senior director of steel at Climate Group, stated: “SteelZero was established to accelerate demand for net-zero steel, and this announcement represents a vital step toward that goal. Steel buyers seeking low-carbon materials need clarity and comparability at a time when multiple decarbonization standards are emerging. Reducing barriers to measurement and progress is critical to helping companies make informed choices about where to source low-emission steel. This collaboration promises to provide that clarity.”
Responsiblesteel continues to be the single, multi-stakeholder standard for sustainability in steel worldwide, with 90 certified organizations.
OECD Steel Committee: Global overcapacity hits record levels as China’s exports surge
At the 98th session of the OECD Steel Committee, held in Paris on 4-5 November 2025, a total of 249 government and industry representatives from 43 delegations gathered to discuss the structural challenges of the global steel market and potential policy responses. The meeting warned that rising overcapacity and non-market practices are once again destabilizing international trade.
In a joint statement, Committee Vice-Chairs Sheryl Groeneweg and Lieven Top noted that China’s steel exports have increased by 10% this year, reaching record levels. They emphasized that this surge has negatively affected producers and workers in market-based economies, weakening the financial performance of companies. The statement also revealed that around one-fifth of planned low-carbon steel projects worldwide have been suspended due to unfavorable market conditions and unfair competition.
According to OECD data, global steel overcapacity could exceed 680 million tons in 2025. Global crude steel production capacity has been rising for seven consecutive years and is expected to reach 2.547 billion tons by the end of the year. With additional projects scheduled to come online by 2028, the figure could climb to 2.656 billion tons. Most capacity expansions are concentrated in Asia and the Middle East, particularly in India and ASEAN countries.
Delegates highlighted that non-market measures—including energy subsidies, tax exemptions, low-interest loans, and preferential treatment for state-owned enterprises—are distorting competition and allowing inefficient plants to remain operational. The OECD’s monitoring report identified China, the Middle East–North Africa (MENA) region, and Southeast Asia as the areas where such practices are most prevalent. The Committee stated that these policies “distort market signals and discourage private investment.”
Trade distortions linked to overcapacity persist despite existing safeguard measures, the report noted. Chinese producers have reportedly increased exports of semi-finished and low value-added steel products to circumvent trade restrictions on finished goods, leaving Asian, African, and Latin American markets increasingly exposed.
Participants agreed on the need for more coordinated global action under the Global Forum on Steel Excess Capacity (GFSEC) framework. Referring to the resolutions adopted at the October GFSEC Ministerial Meeting, the Committee reaffirmed the goal of establishing a joint policy framework by June 2026 to address the structural roots of the global steel crisis. It also stressed that reducing excess capacity would not only restore market stability but also accelerate investments in low-carbon steel technologies.
US, China agree 90-day tariff pause to continue negotiations
The US and China agreed on Monday to temporarily slash so-called reciprocal tariffs and respective countermeasures by 115% to 10%, Kallanish reports.
The announcement made in Geneva states that both countries will pause these tariffs for 90 days to continue negotiations towards “rebalancing trade.” A baseline 10% tariff rate will remain in place in both countries during the period. Other US tariffs on Chinese goods have also been retained, including the 20% rate related to fentanyl, US officials say in a press conference.
Additionally, China will suspend or remove the non-tariff countermeasures taken against the US since 2 April, which include export restrictions.
Their joint statement states that the trade talks in Geneva between China’s Vice Premier He Lifeng and US treasury secretary Scott Bessent and US trade representative Jamieson Greer created a “mechanism to continue consultations on economic and trade relations.”
The deal recognises the importance of bilateral economic and trade relations to both countries and the global economy. It also considers the need for a “sustainable, long-term and mutually beneficial economic and trade relationship.” The countries have agreed to continue advancing negotiations “in a spirit of mutual openness, continuous communication, cooperation and mutual respect.”
Bessent says that it became clear that “neither side want decoupling,” while noting Washington wants China to open for more US goods. He also indicates potential purchase agreements to help balance trade, stating that the US massive trade deficit with China stems from negligence by previous US administrations.
China’s commerce ministry notes that this round of talks has attracted great attention from the international community. Vice Premier He says Beijing is willing to work with the US to “inject more certainty and stability into the world economy.”
Other existing US tariffs on certain sectors, including a 25% tariff on cars and auto parts, remain in place. It’s unclear when a new round of talks will take place.
Analysts at ING say the trade war de-escalation is a “win-win” as it benefits both economies. Yet, they believe the agreement, “which significantly lowers tariffs without any concessions, is likely to be viewed as a particular victory for China.”
“This was a larger-than-expected de-escalation and represents an upgrade to the outlook, though the negotiation process will likely remain challenging,” they add.
Trump eases, delays most ‘reciprocal’ tariffs, supersizes China’s
US President Donald Trump has pulled back his so-called “reciprocal” tariffs to 10% for most countries, whilst increasing the amount charged to China to 125%, Kallanish learns from a Trump social media post.
The latest adjustments, unveiled on Wednesday afternoon, pause higher reciprocal tariffs for 90 days on countries that have not directly retaliated against the US.
“More than 75 countries have called Representatives of the United States, including the Departments of Commerce, Treasury, and the USTR, to negotiate a solution to the subjects being discussed relative to Trade, Trade Barriers, Tariffs, Currency Manipulation, and Non Monetary Tariffs, and that these countries have not, at my strong suggestion, retaliated in any way, shape, or form against the United States, I have authorized a 90 day PAUSE, and a substantially lowered reciprocal tariff during this period, of 10%, also effective immediately,” Trump announces in his message.
The tariff increase on imports from China to 125% is also effectively immediately. Earlier in the day, China had announced a boost in its tariff on US-origin imports, raising the levy to 84% from 34% (see separate story).
“China is the most imbalanced economy in the history of the modern world, and they are the biggest source of the US trade problem, and indeed, they are a problem for the rest of the world,” states US treasury secretary Scott Bessent.
Canada and Mexico are still subject to a 25% tariff on goods that do not comply with the United States-Mexico-Canada Agreement as well as the 25% tariffs on steel, aluminium and foreign autos.
“The world is ready to work with President Trump to fix global trade, and China has chosen the opposite direction,” US commerce secretary Howard Lutnick adds.
UK proposes extending antidumping duties on Chinese organic coated steel
The UK Trade Remedies Authority published its initial findings late Feb. 25, proposing that antidumping and countervailing measures on organic coated steel, or OCS, imported from China be maintained for an additional five years, until May 4, 2029. This proposal aims to protect the UK industry from potential harm that could occur if these measures were removed.
OCS is used to maintain the durability of various structures, particularly in construction, as well as in metal furniture, heating and ventilation systems, and a range of domestic appliances.
In its statement, the TRA concluded that removing these measures would likely result in a recurrence of dumping and subsidization practices, which have historically undermined domestic production. Since their implementation in 2013, these measures have proven effective in keeping Chinese OCS imports below 1,000 mt annually.
Tata Steel UK is the sole producer of OCS in the UK, manufacturing it at the Shotton facility in North Wales. The company contributes approximately GBP 222 million ($280 million) annually through OCS sales and employs around 8,100 individuals across its various operations.
This transition review was initiated on April 15, 2024, examining data from the period April 1, 2023, to March 31, 2024, with the injury assessment covering from April 1, 2020, to March 31, 2024.
Currently, antidumping duties imposed on Chinese OCS imports range from 5.9% to 26.1%, while countervailing duties vary from 13.7% to 44.7%, depending on the specific exporter.
The TRA has opened a window for businesses potentially impacted by these findings to voice their opinions. Interested parties can submit comments to the TRA via the TRA’s public file until March 18, 2025, allowing for a collaborative approach to shaping the future of the UK OCS market.
The UK government and TRA view these measures as crucial in maintaining a level playing field for UK manufacturers and ensuring the sustainability of local production. Last week, the UK government accepted the recommendation to maintain an antidumping measure on imports of corrosion-resistant steel from China for an additional five years.
Platts, part of S&P Global Commodity Insights, assessed the weekly steel hot-rolled coil (HRC) UK at GBP530/mt DDP West Midlands Feb. 20, stable week over week.
China’s steel, aluminum markets remain unfazed by Trump’s tariffs
China’s steel and aluminum markets have shown resilience in the face of the 25% tariffs imposed by US President Donald Trump, indicating that such a move is not expected to adversely impact the two industries in the short term.
China already faces a 25% tariff on its steel exports, which has blocked most Chinese steel from the US market. Broader trade investigations into China’s aluminum exports have also reduced shipments to the US since 2018.
China’s steel exports are likely to remain strong, at least in the first half of 2025, market participants said during the week of Feb. 11.
Any tariff escalation typically would create greater uncertainty in global trade policies, pressuring the growth of China’s manufactured goods.
Infrastructure
China’s steel markets are more prone to trade barriers as domestic consumption remains under pressure due to property sector woes since 2021. Robust exports were the crucial driver behind the manufacturing growth.
China exported about 892,000 mt of finished steel to the US in 2024, up 5.5% year over year, but accounting for only 0.8% of China’s total steel exports, data from research firm CEIC showed.
In 2024, the total retail sales of China’s consumer goods increased 3.5% year over year to Yuan 48.79 trillion ($6.72 billion), slowing from a 7.2% growth in 2023, NBS data showed.
China’s steel consumption by key sectors such as machinery and vehicles rose 2.3% year over year to 309 million mt in 2024, according to S&P Global Commodity Insights data.
China’s exports of manufactured goods are seen strong in the first quarter of 2025, market sources said.
Exports of aluminum products are expected to see limited impact, as shipments to the US have significantly declined since 2018 due to trade investigations, market sources said.
Trade flows
Over January-November 2024, China exported about 812,786 mt of finished steel to the US, up 5.1% year over year, according to the customs data
The export value in dollar terms of China’s mechanical and electrical products, the most steel-intensive manufacturing sector, increased 7.5% year over year to $2.125 trillion in 2024, customs data showed.
In December alone, the export value in dollar terms of China’s mechanical and electrical products increased 12.3% year over year to $119.107 billion, led by a rush to ship goods before tariffs hit China.
The US was China’s largest export destination for aluminum products in 2017, according to customs data.
China exported 259,412 mt of aluminum products to the US in 2024, accounting for 4.1% of China’s total aluminum products exports, according to state-owned research agency Antaike.
Prices
As China’s steel demand slowed faster than its output in 2024, the domestic hot-rolled coil and rebar prices averaged Yuan 3,648/mt ($502/mt) and Yuan 3,519/mt in 2024, down 8.9% and 10.8% year over year, respectively, according to Commodity Insights data.
A robust demand from the electric vehicle and photovoltaic sectors, slower output growth and support from production costs kept China’s aluminum prices elevated in 2024.
The closing price of the most active aluminum contract on the Shanghai Futures Exchange averaged Yuan 19,909/mt ($2,724/mt) in 2024, up 6.5% from a year earlier, exchange data showed.
Erste: European automotive suffers loses, Chinese industry booms
European automotive producers are losing out on the Chinese market, which is still crucial for their sales, according to Erste Group research.
In the past five years, the share of German brands in the Chinese market has decreased by 6 percentage points. “Earlier, for example, Volkswagen sold about a third of its global car production in China in 2023. Over the last ten years, passenger car production in Asia has increased by 33%, and in China even by 68%. By contrast, it has fallen by 11% in Europe and by 24% in Germany,” Erste notes in a report.
Moreover, Europe’s share of global passenger car production has fallen from 28% to 23%, while Asia’s has risen from 56% to 68% during 2012-2023, the document shows.
“The share of European passenger car production in total world production is falling, but European countries are still among the world’s major car manufacturers: Seven of the top-15 passenger car manufacturers are from Europe,” Erste Group notes. “Fortunately, Chinese companies have not yet established themselves in Europe. The most difficult situation today is in the German car industry. The point is that, in Germany, the unit labour costs in the automotive industry are two times higher than in Italy or Spain and three times higher than in the Czech Republic and other CEE countries.”
The most delicate situation is at Volkswagen, whose management plans to close up to three –of 10 – German factories, cut VW employee wages by 10% and conduct layoffs. The unions, on the other hand, want the carmaker to give pay rises, Kallanish notes.
According to the bank, one option is to move production to a cheaper foreign country. “This is already happening, as German production of passenger cars reached a peak before Covid-19 in 2016. It has been declining ever since. On the other hand, in countries like the Czech Republic and Slovakia, passenger car production has been rising,” the report observes.
Global motor vehicle production reached its all-time high in 2017, with 97 million motor vehicles produced worldwide, 70% of which were passenger cars, Erste Group says. Then came the pandemic and production fell by a quarter by 2020.
Production reached 93m units last year and was only 4% below the 2017 record.
Svetoslav Abrossimov Bulgaria
Chinese steel outflows, output vexes global industry
China’s steel industry was among the main concerns in the global steel market amid growing steel exports.
At the Irepas steel industry conference held in Paris on Sept. 16, Wee-Jin Yeoh, secretary general of the South East Asia Iron and Steel Institute, said the rise of Chinese export volumes to Southeast Asia and planned capacity expansions in that region are “unsustainable,” making the next two years difficult for the region amid a trend towards “de-greening.”
China has increased exports in recent years due to capacity utilization at over 80% while domestic demand has been decreasing. On Aug. 13, China’s Baowu Steel Group warned that China’s steel industry is facing a more severe situation than seen in 2008 and 2015 amid plummeting domestic Chinese prices.
China predominantly exports flat steel products to Southeast Asia, amounting to 25 million mt, or 28%, of China’s total steel exports in 2023, according to SEAISI.
Overcapacity in Southeast Asia will lead to an “explosion” of carbon emissions in the region, Yeoh said. Southeast Asia still has relatively young blast furnaces, with comparatively high carbon emissions and will see new blast furnace-basic oxygen furnace capacities come on stream. SEAISI expects 83% of steel production in the region to be done in blast furnaces by 2030, up from 71% in 2024.
Trade barriers on the rise
China’s rapid increase in cheaply priced steel product exports to many regional markets over the past two years has heightened protectionism worldwide with further escalation possible, while global steel prices are likely to remain low, GMK Center, a Ukraine-based steel consultancy, said in a report Sept. 18.
Steel anti-dumping investigations worldwide rose to 14 as of early July from five in 2023, of which 10 and three, respectively, concerned Chinese products, according to GMK.
Among countries and regions already imposing restrictions or conducting AD probes against Chinese steel products are: the European Union, the US, Canada, Vietnam, Turkey, Mexico, Brazil, Thailand, South Africa, and Saudi Arabia, GMK said.
China’s finished steel exports in August rose 21.3% from July and 14.7% from a year earlier to 9.50 million metric tons, the third highest so far in 2024, the country’s customs data showed.
Over January-August, the Chinese exports increased 20.6%, or 12.03 MMt, from the year before to 70.58 MMt.
Its finished steel exports are on track to surpass 100 MMt in 2024 for the first time since 2016, after rising in August, market participants told S&P Global Commodity Insights.
“Under these circumstances, protectionist trade policies for steel products have become more evident not only in Europe and the US but also in Asia, and Japan is now in a situation where some concrete countermeasures are necessary,” Tokyo Steel said as it cut its October list prices in September.
European Commission discloses draft duties on China-made battery electric vehicle imports
The European Commission (EC) unveiled on Tuesday its draft decision on definitive countervailing duties on battery electric vehicle (BEV) imports from China, Kallanish reports.
Carmakers received the proposed additional tariffs they will be subject to, and now have 10 days to provide comments. Interested parties can also request hearings with the EC “as soon as possible.”
The decision follows an anti-subsidy investigation officially started on 4 October 2023. Temporary duties, on top of the existing 10% import tariff, entered into force on 5 July 2024. If approved in an upcoming vote by member states, definitive countervailing duties will be imposed on 5 November for a five-year period.
Based on “substantiated comments” received from carmakers on the provisional measures, the EC has slightly adjusted the proposed rates downwards. They range from 17% to 36.3%, instead of the original maximum rate of 38.1%.
However, US EV maker Tesla has received a much lower rate than peers. This “individual duty rate” of 9% was granted as an exporter from China. This means Tesla’s BEV models shipped from its Shanghai gigafactory will only be subject to a total of 19% import duties “at this stage.”
In comparison, BYD vehicles are subject to 27%. Other cooperating companies, which the EC has not publicly disclosed, will face total tariffs of 31.3%. “Non-cooperating” companies such as SAIC, the parent company of MG Motors, are facing the harshest combined rate of 46.3%.
China Chamber of Commerce to the EU (CCCEU) expressed its “strong dissatisfaction and firm opposition to the EC’s protectionist approach.” The group argues the development of the European EV industry, along with the EC’s own report, “shows that there is no sufficient evidence to demonstrate that China’s BEVs cause substantial material injury in the EU market.”
“The EC’s unfair use of trade tools to hinder free trade in electric vehicles, along with this protectionist approach, will ultimately weaken the resilience of the European electric vehicle industry, disrupt the level playing field, and undermine the EU’s own green transition,” it adds.
The move will also exacerbate trade tensions between China and the EU, but the EC doesn’t see it impacting the ongoing procedures in the World Trade Organisation (WTO). Beijing says the EU has not followed WTO trade rules and has initiated a dispute consultation.