Posted on 01 Apr 2025
Brussels and Beijing have agreed to hold a “dialogue” over the trade issues within the electric vehicle supply chain, as the two look to “improve and rebalance” EU-China trade and investment relations.
Last week, European trade and economic security commissioner Maroš Šefčovič met Chinese commerce minister Wang Wentao on a visit to Beijing. The discussions included the need for a “level playing field” for European companies in the Chinese market, the European Commission said Monday.
The leaders “agreed to have a dialogue covering all trade and investment issues related to the electric vehicles supply chain, in order to ensure they provide greater contribution to long-term European competitiveness and quality jobs,” the statement adds.
The EC notes the current trade relations with Beijing are “unbalanced,” attributing the “widening” deficit in trade in goods to “illegal subsidies.”
For its part, the Chinese commerce ministry said his country is willing to work with Brussels to “strengthen dialogue and exchanges, properly handle economic and trade differences, expand mutual openness, promote the healthy and stable development of China-EU economic and trade relations, and jointly resist unilateralism and protectionism and safeguard the multilateral trading system.”
The move comes amid heightened trade tensions with the US, as President Donald Trump slaps a number of new tariffs both on the EU and China.
Last year, the EU also imposed import duties of up to 45.3% on battery electric vehicles made in China, following an anti-subsidy investigation, Kallanish notes.
Chinese carmakers, meanwhile, are looking to expand their presence in Europe. BYD last week inked a parts distribution deal with Italy’s Intergea to grow its market share in the region. BYD’s models face total tariffs of 27% in the EU.
The giant carmaker, which is building vehicle production in Hungary and Turkey, is reportedly considering Germany for an additional assembly plant in the bloc.
Source:Kallanish
