BEIJING (Reuters) – Beijing wants the European Union to eliminate its preliminary tariffs on Chinese electric vehicles by July 4, Chinese state newspaper Global Times reported, following an agreement between both sides to hold new trade talks.
The EU’s provisional duties of up to 38.1% on imported Chinese-made EVs are set to come into force on July 4 as the bloc investigates what the EU says are excessive and unfair subsidies to Chinese EV makers.
China has repeatedly called on the EU to cancel its tariffs, expressing a willingness to negotiate. Beijing does not want to be drawn into another tariff war, still affected by US tariffs on its products imposed by the Trump administration, but says it would take all measures to protect Chinese companies if that happened.
Both sides agreed to begin tariff negotiations following a call between EU Commissioner Valdis Dombrovskis and Chinese Commerce Minister Wang Wentao on Saturday during a visit to China by Germany’s economy minister, who said the doors for discussion are “open”.
The best outcome of the negotiations is for the EU to overturn its tariff decision before July 4, the Global Times reported on Sunday night, citing observers.
The EU’s increasingly protectionist measures will trigger countermeasures from China, and an escalation in trade frictions would only lead to “lose-lose” outcomes for both sides, the paper said.
The tariffs are expected to be finalized on November 2, at the end of the EU’s anti-subsidy investigation.
China has rejected accusations of unfair subsidies, saying the development of China’s electric vehicle industry was the result of advantages in the industry’s technology, market and supply chains.
(Reporting by Ryan Woo. Editing by Gerry Doyle)
