BEIJING: Negotiations over European Union tariffs on Chinese electric vehicles concluded in Brussels with “major differences” still unresolved, according to a statement from Beijing’s commerce ministry on Saturday.
The EU plans to impose significant new tariffs of up to 35.3 percent on imports of Chinese electric cars. Since September 20, representatives from Beijing and the 27-member EU have engaged in eight rounds of discussions on this matter.
The ministry noted, “There are still major differences between the two sides,” and has invited EU negotiators to continue discussions in China. While some progress was made, the statement emphasized that an acceptable solution has yet to be reached.
China expressed hope that the EU would be more accommodating, urging them to visit China soon and adopt a constructive approach to expedite negotiations for a satisfactory resolution.
Despite being major economic partners, tensions have escalated in recent months over China’s substantial subsidies for its domestic industries. The EU contends that these subsidies undermine free competition and allow Chinese exports to undercut European competitors, a claim that China denies.
In response to the proposed tariffs, China has warned of a potential trade war, having already imposed provisional tariffs on EU-produced brandy, which has caused concern among French producers. The EU is also investigating Chinese subsidies for solar panels and wind turbines.
The Chinese commerce ministry cautioned EU negotiators against making unilateral price commitments with companies outside of their discussions with Beijing, asserting that such actions would damage mutual trust and hinder the negotiation process.
European Council President Charles Michel recently met with Chinese Premier Li Qiang on the sidelines of a Southeast Asian summit in Laos. Michel expressed cautious optimism about reaching a deal soon, though he acknowledged the challenges ahead. “I have the impression that the door is not closed, but it’s a very difficult situation,” he stated.
