China has expressed its desire for the European Union to reverse its decision to impose provisional tariffs on Chinese electric vehicles after agreeing to engage in new discussions. In a statement released on Saturday, China’s commerce minister Wang Wentao and Valdis Dombrovskis, executive vice president of the European Commission, have decided to commence talks regarding the EU’s anti-subsidy investigation into Chinese EVs.
The main objective that China is striving for is for the European Commission to rescind its tariff ruling by July 4 and adhere to the guidelines stipulated by the World Trade Organization. According to Global Times, experts are of the opinion that revoking the tariff decision on Chinese EVs would be advantageous for both parties involved, as the economic and trade partnership between China and the EU holds significant importance and both sides are interdependent.
The European Union’s imposition of provisional duties of up to 38.1% on Chinese EV imports, in addition to the existing 10% duty on imported EVs, is set to take effect by July 4 if negotiations with Chinese authorities fail to result in a resolution. Analysts have cautioned that such actions by the EU may trigger retaliatory measures from China, emphasizing that unless the situation is resolved promptly, both parties could suffer undesirable consequences.
China has vehemently opposed the tariffs imposed by the EU, labeling the move as “blatant protectionism” and potentially in violation of WTO regulations, as stated by its commerce ministry on June 14. A Chinese official, speaking to CNBC, criticized the EU’s investigation into Chinese EVs as being excessively selective and cast doubts on the credibility of its findings.