The European Union and China have agreed to proceed with additional technical discussions in the coming days to explore alternatives to imposing tariffs on China-manufactured electric vehicles (EVs). Both the European Commission and China’s Ministry of Commerce confirmed the ongoing dialogue on Friday.
The EU is preparing to enforce new tariffs, potentially as high as 35.3%, on China-produced EVs next week as part of an anti-subsidy investigation. However, officials from both sides indicated that discussions on alternatives could continue even after the tariffs are applied. Possible solutions being examined include commitments from Chinese EV manufacturers to set minimum prices or direct investments in the European market, providing options other than tariffs.
Following a recent video call between EU trade chief Valdis Dombrovskis and Chinese Minister of Commerce Wang Wentao, the European Commission announced that “further technical negotiations would take place shortly.” This exchange marked the latest development after eight rounds of negotiations between EU and Chinese officials, though significant differences remain unresolved.
A statement from China’s commerce ministry highlighted that Beijing “welcomed the EU team to come to China as soon as possible,” reinforcing both parties’ focus on price commitments as a path toward resolution. Dombrovskis and Wang confirmed their intent to work toward a mutually agreeable outcome that would ensure fair competition within the EU market and adhere to World Trade Organization (WTO) regulations.
Wang proposed the establishment of a bilateral communication mechanism to implement and monitor these price commitments, setting the agenda for the next round of talks. Meanwhile, China’s commerce ministry recently warned the EU against negotiating separately with individual companies, arguing that such actions could jeopardize the progress of ongoing discussions. In response, the European Commission clarified that its talks with the China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCME) do not preclude engagements with individual exporters.
During the call, Dombrovskis expressed concerns about China’s investigations into European exports of brandy, pork, and dairy products, labeling them “unsubstantiated.” China, in turn, maintained that these investigations are compliant with both national and WTO regulations and would continue as planned.
Featured image courtesy of The Gaze
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