The European Union and China have agreed to hold further technical negotiations soon regarding potential alternatives to tariffs on electric vehicles manufactured in China. However, there are still significant gaps between the two parties, as noted by the European Commission on Friday. Next week, the EU is set to impose additional tariffs of up to 35.3% on electric vehicles made in China, following its anti-subsidy investigation. Despite this, the EU has stated that discussions can continue after the tariffs are implemented.
Both sides are exploring options such as minimum price commitments from Chinese manufacturers or investments in Europe as alternatives to tariffs. After a video call between EU trade chief Valdis Dombrovskis and Chinese Minister of Commerce Wang Wentao, the Commission confirmed that further technical negotiations are planned to take place shortly.
The European Commission, which manages trade policy for the 27-member EU, has already conducted eight rounds of discussions with Chinese counterparts and acknowledged that there are still “significant remaining gaps.”
Dombrovskis and Wang reiterated their commitment to finding a mutually agreeable solution that ensures a level playing field in the EU market and complies with World Trade Organization rules. China previously urged the EU not to engage in separate negotiations with individual companies, warning that this could “shake the foundations” of the broader negotiations.
The Commission clarified that Dombrovskis emphasized that the EU’s negotiations with the China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCME) do not preclude discussions with individual exporters. Additionally, Dombrovskis expressed concerns over China’s investigations into EU products such as brandy, pork, and dairy, stating that the EU finds these investigations “unsubstantiated.”
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