EU and China Discussing Alternatives to European Tariffs on Chinese EVs
EU and Chinese officials are discussing alternatives to European tariffs on Chinese EVs, but no solution is imminent, Reuters quoted unnamed European officials as saying.
The European Union has denied claims that the bloc is close to reaching a deal with China regarding electric vehicle (EV) tariffs, following remarks made by an official last week that sparked widespread speculation.
According to a recent report by Reuters, EU and Chinese officials are exploring various options to address European tariffs on Chinese EVs, including the implementation of minimum sales prices for such vehicles in Europe. However, no concrete solution has been reached at this time.
Bernd Lange, the chair of the trade committee of the European Parliament, had previously hinted at a potential agreement between Brussels and Beijing on tariffs for Chinese EV imports into the EU. However, European officials cited in the Reuters report have stated that while discussions are ongoing, there are still significant hurdles preventing a final resolution.
The EU recently concluded an anti-subsidy investigation into battery electric vehicle (BEV) imports from China, leading to the implementation of a five-year policy of additional tariffs on October 30. These tariffs vary for different car companies, with rates ranging from 7.8 percent for Tesla China to 35.3 percent for SAIC Motor, in addition to the original 10 percent tariff.
Despite the tariffs coming into effect, the EU and China are actively exploring alternative, WTO-compliant solutions to address the issues identified in the investigation. One potential option under consideration is the establishment of a minimum price for BEVs imported from China to raise their price in the European market.
Notably, discussions between the two sides have reportedly led to a “technical consensus” on a price commitment plan for China-made EVs, as mentioned in a post by Chinese state TV station CCTV’s social media account Yuyuan Tantian.
