Chinese state-owned carmaker SAIC demands EU hearing over tariffs

Chinese state-owned auto giant SAIC Friday demanded a hearing from the European Union over tariffs imposed by Brussels due to Beijing's support for its domestic electric vehicle (EV) manufacturers.

The EU on Thursday slapped extra provisional duties of up to 38 percent on Chinese EV imports after its executive arm, the European Commission, concluded in an investigation last year that they were unfairly undermining European rivals.

Beijing has warned the move could spark a trade war, and automakers including German giant Volkswagen -- which operates a joint venture with SAIC -- criticised the tariffs even as others said they remained committed to the European market.

SAIC said in a statement on Friday that it would "formally request that the European Commission holds a hearing" on the measures to "practically uphold our legal rights and interests and those of our global customers".

The company said the Commission's initial probe had exceeded its scope by intruding on sensitive business information such as chemical formulations for batteries.

It accused the Commission of "committing errors" in calculating subsidy rates, ignoring information submitted by SAIC and making "harmful suppositions" about the company.

The firm attributed its healthy sales in Europe to its investment in research and development.

"SAIC opposes artificially erecting trade barriers on new-energy vehicles and calls for market order based on fair competition," the statement said.

"Only through open dialogue and cooperation can China and the EU... jointly build a global green, low-carbon economy."

Since announcing the planned tariff hike last month -- on top of current import duties of 10 percent -- the Commission has begun talks with Beijing to try to resolve the issue.

China has repeatedly threatened retaliation, and foreign ministry spokeswoman Mao Ning said at a regular press briefing on Friday that Beijing would "take necessary measures" to safeguard its interests.

Volkswagen, Europe's largest carmaker, on Thursday blasted the EU's decision as "detrimental" to the European market.

But Chinese EV makers Nio and XPeng said they had no plans to exit the European market in the wake of the move.

The United States has already hiked customs duties on Chinese electric cars to 100 percent, while Canada is considering similar action.

But the EU faces a delicate balancing act as it seeks to defend Europe's auto industry while avoiding a showdown with China and meeting its targets for slashing carbon emissions.

Brussels has launched a raft of probes targeting Chinese subsidies for solar panels, wind turbines and trains, while Beijing has begun its own investigations into imported European brandy and pork.