A drone photo taken on June 7, 2024 shows an exterior view of Volkswagen (Anhui) Automotive Company Limited in Hefei, east China's Anhui Province. [Photo/Xinhua]

The European Union's (EU) plan to impose additional duties on imports of Chinese electric vehicles (EVs) will harm both parties, Zheng Shanjie, head of China's National Development and Reform Commission, said on Saturday.

Refuting claims of "overcapacity" in China's new energy industry, Zheng called these claims contrary to market principles and common sense.

Speaking at a high-level meeting between China and Germany on climate change and green transition, Zheng said China will take all necessary measures to protect the legitimate rights and interests of Chinese companies.

The development of China's new energy industry is driven by advantages in technology, market and industry chains, Zheng said, adding that it is a result of market competition rather than subsidies or unfair practices.

The capacity utilization rate of China's new energy vehicles (NEVs) remains at a relatively high level, with most products sold domestically and exports making up only 12.5 percent of output, official data showed.

In recent years, as China continues to expand its high-standard opening up, many foreign automakers have increased their investment in the country.

Zheng said that foreign brands establish factories in China not due to subsidies, but because China possesses the most comprehensive EV industry chain and skilled automotive industry workers.

The global NEV production capacity currently falls short of market demand, and Chinese NEVs can contribute more to the global green and low-carbon transition, Zheng said.

Protectionism cannot enhance competitiveness; it will only hinder global efforts to combat climate change, Zheng added.

He urged Germany to demonstrate leadership within the EU and take the right actions.

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