Posted on 23 Sep 2024
China’s commerce minister Wang Wentao has welcomed more “constructive talks” with the EU regarding the European Commission’s anti-subsidy investigation on all-electric cars.
In a bid to smooth tensions ahead of a crucial vote on the proposed definitive countervailing tariffs, Wang met EC’s vice president and trade commissioner Valdis Dombrovskis in Brussels.
“Both sides clearly expressed their political will to resolve differences through consultations, agreed to continue to promote negotiations on the price commitment agreement, and are fully committed to reaching a solution acceptable to both sides through friendly dialogue and consultations,” the Chinese ministry said following the meeting on 19 September.
The statement echoes a positive sentiment portrayed by the China Chamber of Commerce to the EU (CCCEU), Kallanish Power Materials notes. The group views “this progress as a significant step toward addressing concerns widely shared by the business community and as a positive signal long anticipated by the companies across the EV supply chain in both
A day earlier, Wang and other officials had held a China-EU round table with nearly 30 Chinese and European companies, plus “related industry associations.” In the meeting in Brussels, they exchanged views on finding a “proper solution” to the anti-subsidy case and continuing to deepen the EV industry chain cooperation.
The event was attended by companies including SAIC, BYD, CATL, Volkswagen, Mercedes-Benz and BMW. The German carmakers, which have deep ties with China, have strongly voiced opposition to the proposed additional import tariffs.
Yet, it remains to be seen what exactly the “constructive discussions” could achieve. In a brief post on X, Dombrovskis confirmed the bilateral agreement to “intensify efforts to find an effective, enforceable and WTO compatible solution to the BEV case.” However, he added: “This without prejudice to the EU investigation and its deadline.”
Beijing suggests the parties will re-examine the possibility of setting a minimum price for Chinese EV sellers to avoid countervailing tariffs of up to 35.3%. This comes days after the EC rejected price offers from EV makers in China, saying they had not eliminated the “injurious effects of subsidies” and could not be effectively monitored or enforced.
EU countries were expected to vote on the extra tariffs proposal on 25 September. This has now reportedly been delayed.
Source:Kallanish Power Materials
