The European Commission sought an unprecedented amount of detailed information on Chinese automakers' supply chains during its investigation into the country's subsidised electric vehicle imports, China's commerce ministry said on Thursday.

The Commission, which oversees trade policy for the 27-nation strong European Union, last week slapped extra duties on imported Chinese EVs following the probe, prompting rebuke from Beijing and spying allegations from Chinese state media. China has also launched a dumping investigation into EU pork imports.

"The type, scope and quantity of information collected by the European side was unprecedented and far more than what is required for a countervailing duties investigation," He Yadong, a commerce ministry spokesperson told a news conference. He was responding to a question from Chinese state radio over whether Brussels had been seeking to spy on China's EV industry.

The Commission "mandatorily required" Chinese automakers hand over information concerning sourcing raw materials for batteries, manufacturing components, and pricing and developing sales channels, the spokesperson said.

Governments typically impose anti-subsidy duties on imported goods to protect domestic firms when they suspect the item in question can only have been produced for less than the market rate because it benefited from unfair incentives or handouts.

European automakers are being challenged by an influx of lower-cost EVs from Chinese rivals. The European Commission says prices are typically 20% below those of EU-made models.

Chinese automakers that Brussels deemed non-cooperating companies, such as SAIC, will face a tariff of 38.1% once the provisional duties take effect, which is likely to be July.

He Yadong called claims that Chinese car companies did not fully cooperate "groundless."

State media CCTV also ran an article on Wednesday suggesting that Brussels had sought to spy on Chinese car companies, given the "many unreasonable demands made during this inquiry".

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China protests over EU move to hike tariffs on Chinese electric vehicles

Visitors check the China made BYD ATTO 3 at the IAA motor show in Munich, Germany, on Sept. 8, 2023. China's Commerce Ministry has accused the European Union of making unfair demands in its investigation into imports of Chinese electric vehicles before announcing it was raising tariffs by as much as 38%.

China’s Commerce Ministry on Thursday accused the European Union of making unreasonable demands in its investigation into imports of Chinese electric vehicles before announcing it was raising tariffs by as much as 38%.

Ministry spokesman He Yadong said the European side had demanded excessive amounts of information from Chinese automakers and then unfairly accused the Chinese companies of failing to cooperate.

“The types, scope, and amount of information collected by the European side are unprecedented, far exceeding the requirements of anti-subsidy investigations,” He said. He said that included requiring details on manufacturing and development, technology and product formulas, among other aspects, from Chinese electric vehicle and battery companies.

"After Chinese companies did their best to cooperate with the investigation and provided information, the European Commission still unreasonably accused Chinese companies of not fully cooperating and imposed punitive high tax rates,” He said, describing the Chinese companies as “shocked and disappointed.”

The Chinese spokesman did not announce any new measures in retaliation for the provisional increase in tariffs, which he said lack a “factual and legal basis.” But he reiterated Beijing's warning that it will defend the rights and interests of Chinese companies. On Monday, Beijing said it was opening an anti-dumping investigation into pork exports from Europe. In announcing that, the Commerce Ministry did not mention EV tariffs. But the investigation into various pork products is widely seen as a response to the EU measures on electric cars. It is expected to take one year.

Escalating a trade dispute over Beijing's subsidies that Brussels worries are hurting European automakers, the EU plans to impose provisional tariffs of 17.4% to 38.1% on EVs from China for four months starting July 4. They would apply to vehicles exported to Europe by both Chinese and foreign brands, including Tesla.

The European side has said it wants to discuss the findings of its investigation with Chinese authorities to find ways to resolve the issues.

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Chinese automakers seek tariffs on EU cars - report

Chinese automakers want authorities to retaliate against new EU tariffs, according to a report.

China's state-backed Global Times newspaper said Wednesday auto firms had urged Beijing to hike tariffs on imported European gasoline-powered cars.

The European Commission announced last week it would impose anti-subsidy duties of up to 38.1% on imported Chinese EVs from July.

That followed a move by the U.S. to hike tariffs on Chinese cars in May.

The report said China's auto industry "called on the government to adopt firm countermeasures" at a closed door meeting on Tuesday (June 18).

Sources said the meeting was organized by China's Ministry of Commerce in Beijing and attended by SAIC and BYD.

European giants were also reportedly present, including BMW, Volkswagen and more.

The report said the main aim of Tuesday's meeting was to put pressure on Europe about the tariffs.

The Commerce Ministry did not immediately respond to a request for comment.

The European carmakers either declined to comment or did not immediately respond to requests for comment.

Industry insiders say both Europe and China have reasons for wanting to strike a deal in the months ahead.

They want to de-escalate tensions and avoid the addition of billions of dollars in new costs for Chinese EV makers.

The European Commission said Wednesday it was looking at the situation "with a view to discussing if a mutually agreeable solution can be found."

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