The European Union and China have agreed to pursue additional technical negotiations in an effort to find alternatives to the tariffs due to be imposed on China-manufactured electric vehicles (EVs) next week. The European Commission and China’s Ministry of Commerce confirmed the upcoming discussions, which may consider options such as minimum price commitments or increased Chinese investments within Europe.
“The principals agreed that further technical negotiations would take place shortly,” the European Commission stated, following a video call between EU Trade Commissioner Valdis Dombrovskis and Chinese Minister of Commerce Wang Wentao. With the investigation set to conclude, the EU is expected to introduce tariffs as high as 35.3% on Chinese EVs but has left the door open for continued negotiations.
The Commission has so far engaged in eight rounds of technical discussions with China and noted “significant remaining gaps” in reaching an agreement. Both parties reiterated their commitment to finding a “mutually agreeable solution” that maintains fair competition in the EU market while adhering to World Trade Organization (WTO) standards, according to the European Commission.
China’s commerce ministry welcomed the EU’s delegation to China “as soon as possible” to further clarify the role of price commitments as a potential resolution. “A bilateral communication mechanism for implementing and regulating price commitments should be established,” Wang suggested, according to the ministry’s statement.
Dombrovskis also emphasized that the EU’s talks with the China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCME) do not preclude discussions with individual exporters. He additionally voiced concerns over China’s investigations into EU products such as brandy, pork, and dairy, calling the probes “unsubstantiated.” China defended its ongoing investigations, stating they comply with both Chinese and WTO regulations.
