Electric Car Tariff Dialogue Planned Between China and EU

Electric Car Tariff Dialogue Planned Between China and EU

Given that both parties have decided to discuss a planned series of import duties, there may be less chance of skyrocketing Chinese electric car costs in the EU.

Although tensions still exist, top officials from both areas discussed the tariffs in a call on Saturday and decided to talk about them further.

The two parties haven’t agreed to talks since the EU threatened to impose up to 38% tariffs on Chinese-made electric vehicles (EVs) during the call.

The EU claimed that China’s government was unjustly subsidizing electric vehicles. China retaliated by accusing the EU of trade rule violations and protectionism.

The conversation between Chinese Trade Commissioner Wang Wentao and EU Trade Commissioner Valdis Dombrovskis was described as “candid and constructive” by an EU spokeswoman.

“Continue to engage at all levels in the coming weeks,” the two parties declared.

The spokeswoman did, however, reiterate the EU’s criticism to the funding methods used by the Chinese EV industry.

They stated that the “injurious subsidization” of Chinese EVs had to be addressed in “any negotiated outcome” to the planned levies.

China made it plain that it still disagrees with the EU in a similar statement that was released on Saturday.

On Saturday, Mr. Wang met Robert Habeck, the Federal Minister for Economic Affairs and Climate Action in Germany, in addition to speaking with the EU.

China’s Ministry of Commerce claimed in a Facebook post about the meeting that it had informed Mr. Habeck of its “firm opposition” to the taxes.

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It reiterated that in order “to firmly defend its legitimate rights and interests,” it would sue the World Trade Organization (WTO).

Germany has criticized the tariffs as well.

German Transport Minister Volker Wissing said that the EU’s initial proposal for them last week, in response to its probe into Chinese electric vehicles within the trade bloc, might spark a “trade war” with China.

The auto sector in Europe has also been crucial.

Owner of the Citroën, Peugeot, Vauxhall, Fiat, and numerous other brands, Stellantis, declared that it was against policies that “contribute to the world fragmentation [of trade]”.

The suggested fees vary based on the brand and the extent of negotiations with the EU’s probe, from 17.4% to 38.1%.

These would be in addition to the 10% currently imposed on all Chinese-made electric vehicles.
The US took a considerably more daring step last month, boosting its tariff on Chinese electric cars from 25% to 100%, which prompted the EU to step in.


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