Amid growing tensions over proposed tariffs on Chinese electric vehicles (EVs), the EU and China engaged in a “constructive” meeting, agreeing to intensify efforts to find a solution. The talks, held between EU trade chief Valdis Dombrovskis and Chinese Commerce Minister Wang Wentao, focused on avoiding tariffs that could escalate into a trade conflict.
Growing Divisions in Europe
While some EU member states support the proposed tariffs of up to 36%, others, including Spain and Germany, have voiced strong opposition. Germany, home to a major auto industry, has advocated for free trade and warned against the tariffs. German Vice Chancellor Robert Habeck met with Wang earlier this week, urging for a resolution that avoids economic damage.
Spain recently aligned with Germany in opposing the tariffs, calling for the EU to “rethink” its approach. This division within the EU complicates the bloc’s efforts to protect its automobile industry, which employs around 14 million people.
Tariff Proposal and Anti-Subsidy Investigation
The European Commission, which handles trade policy for the 27-country bloc, proposed the tariffs after an anti-subsidy investigation revealed that Chinese EVs were undermining European automakers. If approved, the tariffs—up to 35.3%—would be added to the EU’s existing 10% import duty on cars. A vote by EU member states is expected before the end of October.
Wang emphasized China’s determination to continue negotiations until the last moment. He expressed concerns that the tariffs would “seriously interfere” with trade and harm both the EU and China.
Escalating Trade Tensions
China has strongly opposed the proposed tariffs and filed an appeal with the World Trade Organization (WTO). Beijing also launched its own investigations into European imports, including brandy, dairy, and pork products, in response to the EU’s actions. Dombrovskis criticized these investigations, calling them “unwarranted” and lacking sufficient evidence, and urged China to drop them.
As both sides continue to seek a resolution, Wang emphasized that the EU’s investigation raises “questionable allegations.” Both parties have agreed to further consultations and negotiations, aiming for a WTO-compatible solution to avoid escalating the trade conflict.
Path Forward
With a decision on the tariffs imminent, the EU and China are under pressure to find common ground. Germany and Spain’s opposition could influence the final vote, and the outcome will have significant implications for trade relations and the future of the EV market in both Europe and China.
Source: en.rfi.fr
