According to the state-controlled Global Times, Beijing is urging the European Union to remove its preliminary tariffs on Chinese electric vehicles before July 4. This request comes after both sides agreed to engage in new trade discussions.
The EU plans to impose temporary duties of up to 38.1% on Chinese-made EVs, citing allegations of excessive and unfair subsidies provided to Chinese EV manufacturers. China has repeatedly called for the cancellation of these tariffs and has expressed a willingness to negotiate. Given the recent imposition of tariffs on Chinese goods by the Trump administration, Beijing aims to avoid another tariff war. However, it asserts that it will take all necessary measures to safeguard Chinese companies if such a situation arises.
Following a call between EU Commissioner Valdis Dombrovskis and Chinese Commerce Minister Wang Wentao, both sides have agreed to initiate talks on tariffs. This decision was made during a visit to China by Germany’s economy minister, who stated that the doors for discussion are open. According to observers cited by Global Times, the best possible outcome of these talks would be for the EU to withdraw its tariff decision before July 4. The newspaper also warns that the EU’s protectionist actions will prompt retaliatory measures from China, resulting in a lose-lose situation for both parties involved. The tariffs are expected to be finalized on November 2, at the conclusion of the EU anti-subsidy investigation. China has denied allegations of unfair subsidies, asserting that the growth of its electric vehicle industry is the result of technological advancements, market advantages, and strong industry supply chains. (Reporting by Ryan Woo. Editing by Gerry Doyle)