Li_DanLi_Dan ・ Nov. 28, 2024
Eurpean Officials Reportedly Deny China and EU Close to Solution over EV Tariffs
The discussions between China and the EU were constructive, but there are structural issues that remain unresolved, said the EU's director general for trade.

TMTPOST -- European officials denied China and the Euoropean Union will soon reach a solution over tariffs on Chinese-made electric vehicles (EVs), according to a Reuters report.

Credit:Xinhua News Agency

Credit:Xinhua News Agency

Brussels and Beijing are nearing a solution over tariffs on Chinese EV imports into the bloc, Bernd Lange the chair of the trade committee of the European Parliament told German broadcaster n-tv last Friday."We are close to an agreement: China could commit to offering e-cars in the EU at a minimum price," Lange said, without elaborating. "This would eliminate the distortion of competition through unfair subsidies, which is why the tariffs were originally introduced."

The EU and Chinese officials are under discussions regarding alternatives to European tariffs on Chinese EVs,  but no agreement is close, Reuters cited European offials invovled in the talks earlier this week. One option being considered is setting minimum prices for these vehicles in Europe.

"I think there have been some quite confusing reports about the imminent deal on battery electric vehicles," said Sabine Weyand, the EU's director general for trade, said in Brussels on Tuesday. "We have had 50 hours of discussions with our Chinese counterparts. They were constructive, but they have not led to an agreement on price undertakings. And there are structural issues that remain unresolved," she said.

The European Commission disclosed October 4 its proposal to impose definitive countervailing duties on imports of battery electric vehicles (BEVs) from China has obtained the necessary support from EU Member States for the adoption of tariffs. The announcement cleared hurdles for the EU to introduce up to 45% definitive tariffs following an anti-subsidy investigation.These tariffs came into effect on October 30.

In the meantime, the EU and China continue to work hard to explore an alternative solution that would have to be fully WTO-compatible, adequate in addressing the injurious subsidization established by the Commission's investigation, monitorable and enforceable, said the European Commission.

China responded the EU’s latest tariffs with a compliant at the World Trade Organization (WTO). In order to safeguard the development of the EV industry and global green transformation cooperation,China has filed a complaint with the WTO over the EU’s final ruling on anti-subsidy measures on November 4, a spokesperson with China’s Ministry of Commerce (MOFCOM) told reporters that day.

The move suggested Beijing has moved forward its complaint as the spokesperson noted it had already appealed to WTO over the EU’s preliminary anti-subsidy measures with tariffs on EV imports from China. The spokesperson expressed China’s “strong opposition” to the bloc’s final ruling. It is regretable to see the EU decided to impose hefty duties on Chinese EVs despite numerous objections by relevant parties ranging from governments of EU member states, industries and the public, the spokesperson said.

Bloomberg reported earlier this month the EU is facing significant challenges in its negotiations with China over a potential alternative to tariffs on EVs, with little prospect of a swift resolution. The report cited people familiar with the matter that the chances of a meaningful breakthrough remain slim despite a round of discussions in Beijing where both sides reportedly talked of some progress. The report said the EU's stringent demands for an enforceable arrangement, equivalent to the recently adopted anti-subsidy tariffs, have not yet been met by China.

However, according to Yuyuan Tantian, a social media influencer affiliated with state broadcaster China Central Television (CCTV), Chinese and the European Union technical teams have reached “technical consensus” , especailly on price commitment framework and the implementation mechanism, after  five rounds of talks concerning China-made electric vehicles (EVs) in Beijing from November 2 to 7.

According to a post on Yuyuan Tantian WeChat account, the so-called "consensus on the price commitment framework" means that the two parties in the recent round of talks agreed on the overall framework, which also suggests both parties are willing to focus resources on negotiating core interests and work hard toward the same goal.

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