Reaction to EU duties on China-built EVs

BRUSSELS (Reuters) -The European Union will impose provisional tariffs of up to 37.6% on imports of electric vehicles made in China from Friday, ratcheting up tensions with Beijing in the EU's largest trade case yet.

Here are some reactions to the news:

EU TRADE CHIEF VALDIS DOMBROVSKIS

"Obviously we are in consultation with member states now, also prior to imposition of those provisional duties and it's clear that member states are also interested to protect their automotive industries from unfair competition.

"Our aim is to ... ensure fair competition and a level playing field. Therefore, once again, we do not see any basis for retaliation.

"Those talks with China are ongoing and indeed should a mutually beneficial solution emerge, we can also find ways not to apply at the end of the day the tariffs.

"But it is very clear this solution (would) need to solve that market distortion that we are currently having ... and it needs to be market compliant."

EUROPEAN COMMISSION SPOKESPERSON

"What is clear is that what the EU wishes for is a solution. (...) The introduction of tariffs (...) is a means to correct an imbalance and unfair competitive situation to the detriment of producers of electric vehicles in the EU, compared to those who are producing vehicles in China."

GERMAN GOVERNMENT SPOKESPERSON

"We welcome the fact that the Commission and China are conducting negotiations. (...) The German government believes that an amicable solution would be highly desirable and the right way forward in international trade relations, not least to avoid the threat of escalation, which would ultimately harm everyone. Legal room for manoeuvre should be used to find a solution.

"It is also clear that we will need serious movement and progress from the Chinese side. (...) We do not want to close our markets to foreign companies. Conversely, we do not want that for our companies either.

"That is why the German government has been in favour of ensuring that all relevant interests are taken into account and carefully balanced in the anti-subsidy investigation from the outset. At the same time, we continue to call on China to address both its overcapacities and its illegal subsidies."

EUROPE'S BIGGEST CARMAKER VOLKSWAGEN

"The timing of the EU Commission's decision is detrimental to the current weak demand for BEV vehicles in Germany and Europe.

"The negative effects of this decision outweigh any benefits for the European and especially the German automotive industry. The Volkswagen Group is confidently accepting growing international competition, including from China, and sees this as an opportunity - this also benefits our customers."

GERMAN AUTO ASSOCIATION VDA

"Both China and the EU Commission must make every effort to find a solution through open and constructive dialogue. A potential global trade conflict must be averted.

"It is also a fact that global problems can only be solved with China.

"China plays a decisive role in a successful transformation towards electromobility and digitalisation - a trade conflict would also jeopardise this transformation.

"What is needed is an approach that promotes the strengths of our industrial nation, develops the location to be internationally competitive, opens up new markets, focuses on innovation and thus secures our prosperity and growth."

CHINESE EV MAKER NIO

"At this stage, NIO maintains the pricing of their current models in its European markets. However, it cannot be ruled out that prices may be adjusted at a later stage as a result of these tariffs being imposed.

"Despite these developments, NIO is fully committed to the European market: we believe in fostering competition and consumer interest, and we hope to reach a resolution with the EU before definitive measures are enforced in November."

CHINESE EV MAKER XPENG

"All current consumers awaiting delivery and future customers placing orders before new tariffs take effect will be protected from any price increases.

"We are committed to proactively maintaining market competitiveness while minimising any potential impact on our current and future customers."

MG MAKER SAIC'S COUNTRY MANAGER FOR ITALY ANDREA BARTOLOMEO

"For the moment we will not change prices of cars in our line-up" in Italy.

TANJA GOENNER, MANAGING DIRECTOR OF BDI, GERMANY'S TOP INDUSTRIAL ASSOCIATION

"Provisional countervailing duties are not a contradiction to negotiations. It is common and constructive practice to accompany the application of trade policy instruments with negotiations.

"It is now important to use the window of opportunity until the introduction of permanent tariffs in the fall for intensive talks with Beijing ... The BDI appeals to the EU Commission and member states to demonstrate unity to the outside world."

PORSCHE

"Porsche AG stands for free world trade and dialogue. The free movement of goods must continue to be possible.

"The imposition of punitive tariffs harms an export nation like Germany. In order to make Europe as resilient as possible and to remain successful in the face of growing international competition, one thing is needed above all: internationally competitive location conditions."

(Reporting by Reuters; compiled by Josephine Mason; editing by Barbara Lewis, Jason Neely and Susan Fenton)