China set for talks with EU over controversial EV tariff hikes

China’s commerce minister Wang Wentao will head to Brussels for talks with the European Union’s trade chief next week as Beijing makes a last ditch effort to stop tariffs on Chinese electric cars, officials said Thursday.

The European Commission, which leads the EU’s trade policy, announced last month it would slap import duties of up to 36% on electric vehicles imported from China.

The tariffs will become definitive and last for five years after a vote by the European Union’s 27 member states, expected before the end of October.

Wang will discuss the issue with the EU’s trade commissioner, Valdis Dombrovskis, on 19 September commission spokesperson, Olof Gill, said.

Unpopular move

His visit will come as divisions over duties widen in the bloc. Spanish premier Pedro Sanchez surprised many on Wednesday when he urged the EU to “reconsider” tariffs.

Germany, home to some of the world’s biggest car manufacturers, has been vocal in its opposition to tariffs and welcomed Sanchez’s intervention. German government spokesman Steffen Hebestreit said “the direction of travel is one that we share”.

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The EU decided in July to levy extra tariffs after an anti-subsidy probe concluded car manufacturers in China benefitted unfairly from state subsidies.

China last month filed an appeal against the EU’s duties with the World Trade Organisation (WTO) and also targeted the bloc’s dairy imports with an anti-subsidy probe.

That came after China launched an anti-dumping investigation in June into pork imports from the bloc. Spain is the EU’s largest exporter of pork products to China.

More needs to be done

Although both sides have stressed that they want to resolve the issue through dialogue, Gill said offers made so far to address the bloc’s concerns were not enough.

He said “several Chinese exporters submitted offers for price undertakings,” which are commitments by exporters to respect minimum import prices in order to offset injurious subsidies.

After “thoroughly” looking at the offers, “the commission has concluded that none of the offers met these requirements”, Gill told reporters in Brussels.

But he added, “the Commission remains open to a negotiated solution”.

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