EU and China in Search of Alternatives to E-Car Tariffs

The European Union and China are striving to explore possible alternatives to the planned tariffs on electric vehicles manufactured in China through technical discussions. Tariffs of up to 35.3 percent are planned, as reported by Reuters, which is based on an anti-subsidy investigation. At the center of the negotiations is the possibility of requiring minimum prices from Chinese manufacturers instead of imposing tariffs, or promoting investments in Europe. These measures could replace the implementation of tariffs. Following a virtual meeting between EU Trade Commissioner Valdis Dombrovskis and Chinese Commerce Minister Wang Wentao, the European Commission stated that "the main negotiating parties have agreed to continue technical discussions." Eight rounds of technical talks have already taken place, yet according to the European Commission, "substantial remaining differences" still exist. China has indicated its readiness to receive the EU delegation and continues to view price commitments as a solution to resolve the dispute. Both Dombrovskis and Wang reiterated their commitment to a consensual solution to ensure fair competition conditions in the EU market while complying with World Trade Organization (WTO) rules. According to the Chinese Ministry of Commerce, the next phase of talks should include the establishment of a bilateral communication mechanism to implement and regulate price commitments. China has warned the EU against conducting separate negotiations with companies, as this could undermine the negotiating basis. However, the European Commission clarified that talks with the China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCME) do not preclude dialogue with individual exporters. Valdis Dombrovskis also expressed concerns regarding China's investigations into European products such as brandy, pork, and dairy, which he described as "unfounded." On the other hand, China reaffirmed the continuation of its investigations in accordance with Chinese law and WTO regulations.