China, EU to Discuss Electric Car Tariffs on September 19

Thu Sep 12 2024
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BRUSSELS: China’s Commerce Minister Wang Wentao will hold talks with the European Union’s Trade Commissioner Valdis Dombrovskis in Brussels on September 19, as Beijing makes a last-ditch effort to stop tariffs on Chinese electric vehicles (EVs), officials said Thursday.

The European Commission announced last month its intention to impose import duties of up to 36 percent on electric vehicles imported from China. These tariffs are set to be definitive and enforceable for five years, pending a vote by the EU’s 27 member states, which is expected to take place before the end of October.

Wang Wentao’s visit marks a crucial attempt by Beijing to halt the implementation of these tariffs. The European Commission’s decision follows an anti-subsidy investigation that concluded Chinese car manufacturers have been receiving unfair state subsidies, giving them a competitive edge in the EU market.

The upcoming talks come amid increasing division within the EU regarding the proposed tariffs. Spanish Prime Minister Pedro Sanchez recently called on the EU to “reconsider” the tariff plans, a stance that has drawn support from Germany.

Germany, which hosts some of the world’s largest car manufacturers, has been particularly vocal in its opposition to the tariffs. German government spokesman Steffen Hebestreit expressed agreement with Sanchez’s position, noting that the direction of travel aligns with Germany’s interests.

The EU’s move to levy additional tariffs was driven by findings from an anti-subsidy probe, which suggested that Chinese EV manufacturers benefited disproportionately from government subsidies. In response, China has already filed an appeal with the World Trade Organization (WTO) against the proposed duties and has initiated an anti-subsidy investigation into EU dairy imports.

This escalation follows an anti-dumping probe into EU pork imports, targeting Spain, the largest exporter of pork products to China.

Despite the growing tensions, both China and the EU have emphasized their desire to resolve the dispute through dialogue. However, European Commission spokesperson Olof Gill indicated that initial offers from Chinese exporters to address the EU’s concerns were insufficient.

Gill stated, “Several Chinese exporters submitted offers for price undertakings. After thoroughly reviewing these offers, the Commission concluded that none met the requirements.” Nevertheless, he reaffirmed that the European Commission remains open to negotiating a resolution.

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