Brussels and Beijing have agreed to reassess price undertakings for China-made electric vehicles in an effort to avoid additional tariffs. The European Commission and the Chinese government have been at odds over subsidies given to Chinese electric vehicle manufacturers that artificially lower prices and harm European competitors. The Commission proposed additional import tariffs ranging from 7.8% to 35.3%, which need to be ratified by member states before November.
Chinese officials have been negotiating behind the scenes to find a solution to the dispute and shield domestic companies from steep tariffs. A recent meeting between Vice-President Dombrovkis and Minister Wang in Brussels demonstrated a willingness to continue negotiations and potentially re-evaluate price undertakings as a trade tool to avoid anti-subsidy tariffs.
Beijing has been lobbying certain member states, such as Hungary and Germany, to oppose the additional tariffs proposed by the Commission. Last week, Spain’s Prime Minister called for a reconsideration of the tariffs, highlighting the divide within the EU on this issue. The vote by member states in the coming months will determine the fate of the proposed duties, which are meant to level the playing field in the electric vehicle market.
Both sides have pledged to intensify negotiations to find a solution that is effective, enforceable, and WTO-compatible. The outcome of these discussions will have significant implications for the future of trade relations between the EU and China in the electric vehicle sector.
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