China has called on France to encourage the European Commission to find a solution that is acceptable to both the European and Chinese electric vehicle (EV) industries. This appeal comes as France maintains its position that the European Union (EU) will not compromise on key issues while it seeks to overturn tariffs on French brandy imports.
The EU initiated an anti-subsidy investigation into imports of Chinese-made battery EVs last year, leading to a vote in October for tariffs on these vehicles. In retaliation, China has commenced its own investigations into European pork and dairy products and imposed temporary anti-dumping measures on EU brandy imports in October.
During a meeting in Shanghai on Sunday, Chinese Commerce Minister Wang Wentao urged French junior trade minister Sophie Primas to take “an active role” in addressing the EU’s concerns regarding Chinese EVs. He emphasized that the EU’s investigation has significantly impeded cooperation between the auto industries of China and the EU.
Primas responded by affirming that the EU is committed to maintaining trade relations with China but will not concede on critical points. She stated, “We will continue to defend fairer competition that benefits everyone,” while also indicating that Wang expressed a willingness to consider the proposals of French brandy producers during their discussions.
Primas is on a three-day visit aimed at addressing China’s import duties on brandy, which France describes as politically motivated and unjustified. In their dialogue, Wang pointed out that China’s investigations into EU brandy, pork, and dairy products are conducted in line with domestic industry applications and comply with World Trade Organization (WTO) rules, contrasting this with what he described as the EU’s “rash” approach to the EV probe.
Despite the tensions, Wang stated that China remains open to collaborating with the European Commission to work towards a “proper solution,” although he did not provide further details. China launched an anti-subsidy investigation into imported EU dairy products in August, following its investigation focused on pork intended for human consumption that began in June.