China has urged the European Union (EU) to withdraw its preliminary tariffs on Chinese electric vehicles (EVs) before July 4, reported China’s state-controlled Global Times. The EU plans to impose provisional duties of up to 38.1% on imported Chinese-made EVs, citing concerns over alleged excessive subsidies provided to Chinese manufacturers.
The call for tariff withdrawal comes as both sides agree to resume trade talks, following discussions initiated during a recent visit to China by Germany’s economy minister, where EU Commissioner Valdis Dombrovskis and China’s Commerce Minister engaged in talks.
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According to observers cited by the Global Times, the optimal outcome would be for the EU to revoke its tariff decision before the impending deadline. However, analysts and European trade groups caution that negotiations will be challenging, emphasizing that China must be prepared to make significant concessions.
Siegfried Russwurm, head of Germany’s BDI industry association, noted the importance of dialogue in defusing tensions, stating, “As long as there are talks you’re not shooting at each other,” during an interview with German broadcaster Deutschlandfunk.
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Despite China’s plea for dialogue, it has hinted at potential retaliatory measures if the EU proceeds with tariffs, underscoring rising trade tensions between the world’s second-largest economy and the 27-nation bloc. The Global Times previously reported on China’s considerations to initiate anti-dumping investigations into European pork imports and to impose tariffs on other goods.
The EU’s move to impose tariffs reflects heightened protectionism amid concerns over China’s economic practices and market distortions. However, China has denied allegations of unfair subsidies in its EV sector, attributing its industry’s success to technological advancements and market competitiveness.
