Beijing (Brussels Morning Newspaper) – China’s Xi Jinping told EU Council President Costa in a phone conversation that China hopes the EU can become “a trustworthy partner for cooperation.”
As reported by the Chinese media CCTV, Chinese President Xi Jinping said as long as China and Europe treat each other as equals, respect each other and commit to sincere discussions, they can
“advance collaboration and accomplish great things.”
Further, Xi said China and Europe should support strategic communication and improve mutual trust as the international crisis becomes more intense and complex. The phone discussion came as uncertainties remain elevated between China and the European Union over the latter’s tariffs on Chinese electric cars.
Why did the EU impose tariffs on Chinese electric vehicles?
Late in 2024, the European Union imposed substantial tariffs on electric vehicles imported from China, a stark shift in the balance of trade between the two regions. The EU levied tariffs on Chinese-made electric vehicles ranging from 7.8% to 45.3%, depending on the manufacturer. The decision by the EU follows a year-long investigation that determined that EV manufacturers from China benefit from significant state subsidies, which enable them to sell into Europe at artificially low prices. This triggers competitiveness among European car manufacturers.
The EU argues that in the absence of these tariffs, local manufacturers will suffer losses that are unsustainable and will be pushed out of the market, especially with Chinese firms now having rapidly increased their market share in Europe from 1.9% in 2020 to 14.1% in mid-2024.
The Chinese government has termed the tariffs “protectionist” and has announced plans to file a complaint before the World Trade Organization (WTO). Beijing has threatened to take necessary measures in order to protect its companies’ interests. The decision on tariffs was contested among the EU member states. Germany and Hungary were some of the countries against the measures. However, most supported the tariffs, reflecting continuing divisions within the EU on how to handle economic relations with China.
