BRUSSELS, Belgium: EU Council President Charles Michel urged China to adjust its economic practices amidst escalating tensions between China and the European Union over tariffs and subsidies.
The dispute, primarily revolving around China’s subsidies to its industries, has led the EU to impose significant tariffs—up to 35.3%—on Chinese-made electric vehicles, which Brussels claims unfairly undercut European competitors.
In response, China has retaliated with new tariffs on EU products, particularly French brandy, further straining trade relations.
Michel, speaking after meeting with Chinese Premier Li Qiang, emphasized the importance of rebalancing economic ties to ensure fair competition and a level playing field. He expressed hope that both sides could reach an agreement soon, despite the challenging nature of the discussions.
The EU’s tough stance comes as it investigates further Chinese subsidies in the solar panel and wind turbine sectors. Michel made clear that the EU will no longer be “naive” about these subsidies, but remains committed to ongoing dialogue to avoid a full-blown trade war. As Beijing’s brandy tariffs come into effect, French producers have voiced concerns, and the EU has pledged to challenge China’s measures at the World Trade Organization.
