Brussels (Brussels Morning Newspaper) – China urged the European Union not to run separate talks over the costs for China-made electric vehicles, cautioning that would “shake the foundations” of bilateral tariff discussions.
The statements, issued on the website of China’s Ministry of Commerce, come days after Brussels denied a Chinese proposal for EVs made in China to be traded at a minimum price of 30,000 euros ($32,000), a move Beijing expected would avert EU tariffs being imposed next month.
Moreover, discussions in Brussels over the European Union’s tariffs on Chinese electric vehicles have concluded with “major differences” remaining, the Chinese commerce ministry expressed Saturday. “There are still major differences between the two sides. So far, the talks have not reached a solution acceptable to both sides,” a ministry statement stated, adding that it had invited EU negotiators to the next round of discussions in China.
How are Chinese EV producers impacted by the EU tariffs?
The European Commission stated it would adopt tariffs on China-made electric vehicles (EVs) by the end of October after a divided vote by EU members. The Commission imposed tariff rates ranging from 7.8% for Tesla to 35.3% for SAIC and other producers thought not to have collaborated with the EU’s anti-subsidy investigation.Â
The European Commission has stated it is willing to continue negotiating an alternative to tariffs with China even after tariffs are inflicted. The EU executive expressed last month it could re-examine a price undertaking – involving minimum import fees and typically volume caps – having previously denied those Chinese companies have offered.
One option under negotiation is a matrix of minimum import costs calculated using criteria such as the range, battery performance and measurement of the electric vehicle, along with whether it is a two- or four-wheel drive, according to sources. The Commission has expressed any alternative must be in line with World Trade Organization (WTO) rules, adequate to release the injury due to subsidies and enforceable.
