China is likely to adopt limited and targeted retaliation against the European Union after the bloc unveiled tariff increases on Chinese electric cars, with Beijing wary that a more robust response could backfire.
The EU move to take levies on Chinese vehicles to as high as 48% starting next month has it joining the U.S., Turkey and other nations in acting to limit a surge in imports from the Asian nation. China’s Commerce Ministry and its chamber of commerce in the EU blasted the step by Brussels after the Wednesday announcement.
While retaliation may help dissuade further trade-protection moves around the world, the danger for Beijing is that an excessive response encourages further trans-Atlantic alignment against China — cutting against Chinese President Xi Jinping’s efforts to encourage "strategic autonomy” in Europe.
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