EU and China to Continue Technical Negotiations on Electric Vehicle Tariffs

The European Union and China have announced plans to engage in further technical negotiations regarding alternatives to tariffs on electric vehicles manufactured in China. This decision follows a video conference between Valdis Dombrovskis, the EU trade chief, and Wang Wentao, China’s Minister of Commerce, as reported by the European Commission on Friday.

As part of its anti-subsidy investigation, the EU is poised to impose additional tariffs of up to 35.3% on Chinese-built electric vehicles starting next week. However, officials from the EU have indicated that discussions may persist beyond this deadline. According to a Reuters report, both parties are considering minimum price commitments from Chinese manufacturers or potential investments in Europe as viable substitutes for these tariffs.

During the recent talks, the Commission highlighted that several significant gaps remain in negotiations despite having already conducted eight rounds of discussions with their Chinese counterparts. In response, China’s commerce ministry expressed a willingness to host the EU delegation in China “as soon as possible.” They reiterated their position that price commitments could serve as a pathway to resolving the ongoing trade dispute.

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Dombrovskis and Wang emphasized their mutual dedication to finding a solution that would ensure fair competition within the EU market while remaining consistent with World Trade Organization regulations. Per Reuters, Dombrovskis also voiced concerns regarding China’s ongoing investigations into EU products such as brandy, pork, and dairy, describing these inquiries as “unsubstantiated.”

China has countered by asserting that its investigations adhere to both domestic and international trade rules.

Source: Reuters