China hints at targets in EV tariff battle

STORY: China has dropped some hints about how it could retaliate against EU tariffs on its electric vehicle exports.

The Commerce Ministry said Friday it would hold a hearing to examine claims European brandy producers are selling into the country at below market rates.

Officials have also referred to another probe into EU pork exports.

Analysts say the targets were chosen to pressure Spain and France - which have been among the strongest backers of the new levies.

Europe this week imposed import tariffs of up to 37.6% on China-made EVs.

That will hit local brands like BYD, but also Chinese-made cars from western firms including Tesla.

The tariffs are provisional, while Brussels conducts a probe in Beijing’s support for its carmakers.

China has said both sides should stay at the negotiating table for now.

Officials have said they don’t want another trade war, but will take all necessary steps to protect Chinese firms.

Reports in state-backed media indicate other possible targets for retaliation.

That could include dairy products and luxury cars.

The EU tariffs have also divided opinion in Europe.

German automakers have called for them to be scrapped, fearing they could be a target for Beijing’s response.