China and EU to discuss electric vehicle tariffs
The risk of rising prices of Chinese electric cars in the EU could be thawing as both sides agreed to negotiate a planned series of import tariffs. Officials from both sides discussed the proposed tariffs, agreeing to discuss them further.
This marks the first time that both sides have agreed to negotiate since the EU threatened China with tariffs of up to 38% on electric vehicles (EVs). The EU feared that Chinese EVs were unfairly subsidised by Beijing. China responded by accusing the EU of protectionism and breaching trade rules.
A spokesperson for the EU told the BBC that the call between Trade Commissioner Valdis Dombrovskis and his Chinese counterpart Wang Wentao was “candid and constructive.” The two sides, they added, will “continue to engage at all levels in the coming weeks.” But they also doubled down on the EU’s opposition to how the EV industry in China is funded. “Any negotiated outcome” to such tariffs need to address the “injurious subsidisation” of Chinese EVs.
China released a similar statement, making it clear that it disagrees with the EU. Along with its call with the EU, Mr Wang met Germany’s Vice-Chancellor and Federal Minister for Economic Affairs and Climate Action Robert Habeck on Saturday, 22nd June. In a post on Facebook about the meeting, the Chinese ministry of commerce said that it had told Mr Habeck about its “firm opposition” to the proposed tariffs.
It repeated its threat to file a lawsuit with the World Trade Organisation (WTO) so that it can “firmly defend its legitimate rights and interests,” it said.
