Will the European Union permanently apply tariffs on Chinese electric cars? This is the question to which Beijing is trying to find a more advantageous answer for itself. And to stem the blow of tariffs on Chinese electric vehicles, the communist government sent Chinese Trade Minister Wang Wentao to Brussels to talk to the outgoing Union Trade Commissioner, Valdis Dombrovskis. Despite yesterday’s long lunch, in which there were “frank and constructive” negotiations, the trade officials of China and the European Union did not reach an agreement to stop the tariffs.
EU ‘open’ to negotiated solution with China on car tariffs, but time is running out
Brussels still leaves the door open for Beijing to continue a dialogue and “find a mutually acceptable solution, which should be effective in addressing the problem, enforceable, monitorable and compatible with the World Trade Organization”, the European Commission specified yesterday, which even raised the possibility of reviewing the issue of prices of Chinese car manufacturers, the Commission note reads. An allusion, this, linked to Beijing’s attempt to set a minimum price cap on electric vehicles made in China exported to the single market.
Brussels rejects proposals from Chinese manufacturers who want to avoid duties on electric cars
Brussels therefore remains willing to work on a shared solution, which however “does not prejudice the investigation” into the possible unfair mega-subsidies that the Chinese state gives to its companies. But if on the one hand Brussels leaves a glimmer of hope for discussions, on the other it attacks Beijing’s decision to start anti-dumping investigations into exports of European brandy, pork and dairy products, deemed “unjustified and based on questionable accusations and lacking sufficient evidence”.
Vote postponed after pressure from Germany and Spain
The fears of European car manufacturers, threatened by Chinese competition that tends to conquer ever more significant shares, are strong. Beijing, which considers the European investigation “non-compliant, unreasonable and unfair”, still has several weeks ahead of it to reach a favorable agreement and avoid the entry into force, for five years, of the provisional tariffs imposed in July by the Commission in response to the huge subsidies granted by the Chinese government to its green car sector: these are provisional duties of up to 36.3% against BYD, Geely and SAIC, which are added to the 10% duties to which exporters from China were already subject.
EU ‘pardons’ Tesla: only 9% duties on its cars produced in China
The final vote of the 27 member countries on the introduction of definitive duties scheduled for September 25 has been postponed, probably due to pressure from Germany and Spain. Berlin has repeatedly expressed its opposition to making the duties on Chinese electric cars definitive. Madrid has also joined its request, in particular after President Pedro Sanchez’s trip to China. On that occasion, the Spanish Prime Minister asked to reconsider the imposition of tariffs, arguing that a trade war with Beijing is anything but desirable at this time.
