In a recent development, China and the European Union have agreed to initiate talks on the proposed imposition of tariffs on Chinese-made electric vehicles (EVs) being imported into the European market, as confirmed by senior officials from both sides on Saturday.
Germany’s Economy Minister Robert Habeck shared that he had been notified by EU Commissioner Valdis Dombrovskis about the upcoming negotiations on tariffs with China.
The announcement followed a statement from China’s Commerce Ministry stating that its head Wang Wentao and Dombrovskis, the executive vice president of the European Commission, had agreed to commence consultations regarding the EU’s anti-subsidy investigation into Chinese EVs.
“This is new and surprising because it has not been possible to enter into a concrete negotiation timetable in the last few weeks,” Habeck remarked during a visit to Shanghai, stressing that while this was a positive first step, more discussions would be necessary in the future.
Habeck emphasized the importance of open markets but stressed the need for a level playing field, stating that proven subsidies meant to enhance the export advantages of companies could not be tolerated.
One of the points of contention between Beijing and Berlin was highlighted by Habeck as China’s support for Russia in its conflict in Ukraine. Habeck expressed his concerns that increasing Chinese trade with Russia could strain their economic relationship.
The EU is set to implement provisional duties of up to 38.1% on Chinese EV imports by July 4, with a continued investigation until November 2, when definitive duties may be imposed for a period of five years.
Habeck clarified to Chinese officials that the proposed EU tariffs were not intended as punitive measures but rather as a means of ensuring fair competition. He emphasized that the review of Chinese subsidies was conducted meticulously over nine months to ascertain any unfair advantages.
In response, Zheng Shanjie, chairman of China’s National Development and Reform Commission, reaffirmed China’s commitment to protecting its companies and expressed hope that Germany would exhibit leadership within the EU to find a mutually beneficial solution.
Zheng refuted allegations of unfair subsidies, attributing the growth of China’s new energy industry to technological advancements, market advantages, and industry supply chains developed through intense competition rather than subsidies.
The dialogue between the EU and China regarding tariffs on Chinese-made EVs indicates a willingness from both sides to engage in constructive discussions to ensure a fair and competitive trade environment.
