China and EU held technical talks on looming EV tariffs

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China and EU held technical talks on looming EV tariffs

Business 04 Jul 2024 06:11 PM IST Reuters

China's commerce ministry said at a regular press conference that China and Europe had held many technical talks about tariffs on Chinese electric cars, which the European Commission is scheduled to confirm on Thursday. "There is still a four-month window before arbitration, and we hope that the European and Chinese sides will move in the same direction, show sincerity, and push forward with the consultation process as soon as possible," said He Yadong, a ministry spokesperson.

The Commission will approve temporary import duties of up to 37.6% on electric vehicles (EVs) made in China after the bloc accused the second-largest economy in the world of giving its companies substantial state subsidies. The EU's trade policy has become more protectionist due to concerns that China's production-focused development model will flood Europe with inexpensive goods as Chinese enterprises strive to increase exports amid poor domestic demand.

Beijing disputes claims that Chinese electric vehicles receive improper subsidies. "The governments of some EU member states and some major automobile companies have repeatedly, explicitly opposed the EU's anti-subsidy measures," He Yadong said.

"China hopes the EU will heed the call from within the EU, conduct consultations with China rationally and pragmatically, and avoid countervailing measures hurting the mutually beneficial cooperation and common development of the China-EU auto industry," he added.

EU countries are weighing whether to support additional tariffs on Chinese-built EVs, highlighting Brussels' challenge in building support for its largest trade case yet as Beijing threatens wide-ranging retaliation. In the coming weeks, the issue will be put to the 27-strong bloc in an advisory vote. Germany, whose carmakers made a third of their sales last year in China, reportedly wants to stop the tariffs, while France has been among the firmest backers.

China is undertaking an anti-dumping inquiry into European brandy imports. Chinese customs data shows that almost all EU brandy exports to China came from France last year. Beijing has also opened an anti-dumping investigation into imports of European pork and its by-products, which analysts say is aimed at pressuring Spain, the Netherlands and Denmark to break with the Commission over the curbs.

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China and EU held technical talks on looming EV tariffs

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