Written by Cláudio Afonso | LinkedIn | X
The European Union and China have agreed to hold “further technical negotiations” soon to explore potential alternatives to extra tariffs on China-made electric vehicles, the European Commission said on Friday.
Earlier this month, Brussels rejected a Chinese proposal to set a minimum price of €30,000 ($32,900) for all the China-made EVs sold in Europe.
This proposal emerged amid ongoing negotiations tied to the EU’s anti-subsidy investigation into Chinese EVs, which could result in tariffs starting next week, on October 31, if no agreement is reached.
Following a virtual meeting between EU Trade Commissioner Valdis Dombrovskis and China’s Commerce Minister Wang Wentao, the Commission said, “The principals agreed that further technical negotiations would take place shortly.”
European Commission President Ursula von der Leyen has recently noted that discussions are underway with Beijing to consider mechanisms such as price commitments or investments in Europe as alternatives to tariffs.
The additional tariffs would remain in place for five years if implemented. However, negotiations can continue in case the extra tariffs become effective.
The European Commission launched the investigation amid allegations that Chinese EV makers receive government subsidies, enabling them to price their vehicles more competitively than European manufacturers.
EU member states recently voted on proposed anti-subsidy tariffs, with Germany and four other nations opposing the tariffs, while 12 abstained, and 10 voted in favor.
Supporters of the tariffs included France, Italy, and several Eastern European countries, including Poland, Latvia, and Estonia.
When rejecting the minimum price proposal, Brussels said that the matter extends beyond pricing alone, highlighting the need to address state subsidies that Chinese EV manufacturers allegedly receive, which distort competition within the EU market.
If imposed, the new tariffs would add to the existing 10% duty on EV imports. Tesla would face an additional 7.8 percent tariff, while Chinese automakers BYD and Geely could see tariffs of 17 percent and 18.8 percent, respectively.
Companies that cooperated with the investigation would incur a 20.7 percent tariff, while non-cooperating firms, including SAIC Group, could be hit with a 35.3 percent duty.
Automotive News Europe reported earlier this week that Nio’s plans to launch its second sub-brand Firefly in Europe next year remain unchanged.
Written by Cláudio Afonso | LinkedIn | X
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