A worker works at the assembly workshop of automaker SAIC Motor's Lingang base in Shanghai, east China, April 23, 2022. [Photo/Xinhua]

Chinese carmaker SAIC Motor said on Friday that it will defend its rights in accordance with the law and formally call on the European Commission to hold a hearing on interim anti-subsidy tariff measures against Chinese electric vehicle (EV) makers.

The announcement came after the European Commission imposed additional tariffs of up to 37.6 percent on Chinese EV makers on Thursday. Compared to the rates pre-disclosed on June 12, several individual duties have been slightly reduced based on comments submitted by interested parties on the accuracy of the calculations, according to a statement from the commission. It said that a final decision must be taken on definitive duties within four months through a vote by EU member states.

SAIC Motor responded by stating that it will effectively safeguard its "own legitimate rights and interests as well as the interests of its global customers."

It noted that, the European Commission had intruded upon commercially sensitive information during its anti-subsidy investigations, such as obliging the company to provide battery-related chemical formulations, which are beyond the scope of regular investigations.

Furthermore, the European Commission made several mistakes when calculating the subsidies. For instance, it incorporated subsidies offered to domestic EV buyers when calculating subsidies for cars sold in the EU.

During the course of the investigation, the European Commission ignored several facts and arguments submitted by SAIC Motor. The commission has made adverse presumptions, citing the so-called non-cooperation with the investigation under Article 28 of the basic countervailing regulations.

Additionally, according to the automaker, the group has invested nearly 150 billion yuan (about 21.04 billion U.S. dollars) in the research and development of core technologies over the past decade. This investment has resulted in over 26,000 active patents, which helps explain SAIC Motor's brisk sales across Europe.

SAIC Motor voiced opposition to the practices of "artificially setting up trade barriers for EVs" and called for a level playing field. Only through dialogue and cooperation will China and the EU achieve faster synergy in innovation and contribute to the global low-carbon economy, the automaker said.

China's Ministry of Commerce said on Thursday that China hopes the EU will work with the country and show sincerity in advancing talks on the EU's anti-subsidy probe into Chinese EVs. It also called for rationality and pragmatism as talks progress.

Innovation, not protectionism

The implementation of the European Commission's provisional tariffs coincided with UEFA Euro 2024, during which period Chinese EVs manufacturer BYD became the official auto partner. It is the first time in the tournament's history that it has partnered with a new energy vehicle brand and a Chinese automaker.

"We are excited to welcome BYD, a pioneering brand with a 29-year pedigree in advanced battery technologies with a reputation for global innovation in new energy vehicles and the world's biggest electric car company, as a partner for UEFA EURO 2024," said Guy-Laurent Epstein, marketing director of UEFA, Europe's football governing body.

"BYD is globally renowned for its innovation in the new energy vehicle sector. We are optimistic about BYD's role in promoting the green transformation of the Euro," he said.

Last month, England football player Phil Foden posted a photo of his new car made by BYD. Meanwhile, a 37-year-old German engineer, who identified himself only as Florian, has been driving his BYD Atto 3 for some time and is satisfied with the vehicle. "I feel good when driving to and from the factories on the highway or other roads," he said.

According to the European Commission, however, BYD will face an additional tariff rate of 17.4 percent, whereas Geely, another Chinese automaker, would be subject to additional rate of 19.9 percent.

The decision to impose additional tariffs, while incurring widespread opposition from the Chinese side, has also been criticized by European politicians, industry insiders and ordinary people as well.

Some prominent European political figures, including German Chancellor Olaf Scholz, opposed the tariff hikes, calling for free trade.

Bill Russo, founder and CEO of Automobility Limited, said that additional tariffs may "distort market dynamics, stifle innovation, hinder benign competition and self-improvement of local automotive industry in Europe."

He noted that benign competition "has driven the transformation and upgrading of the European automotive industry."

"The EU's imposition of tariffs will destroy this benign competition, and slow down the electrification and digital transformation of the European automotive industry," Russo added.

"We believe that any trade barriers could potentially disrupt global supply chains and negatively impact economies as well as industry players," said Maximilian Butek, executive director and board member of the German Chamber of Commerce in China - East China.

"As European policymakers prioritize the transition to green mobility, access to affordable new energy vehicles will be crucial," he said. "We are confident that open markets, rather than tariffs, will provide the best solution to achieving this goal."

"Success for Europe can only be achieved through innovation and not through protectionism," Susanne Holzbach, a reader, commented on an article on tariff hikes by German media outlet Frankfurter Allgemeine.

"In the long term, the latter leads to higher prices for domestic users while simultaneously causing a decline in competition that drives innovation," Holzbach said.