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In a development hinting at a potential thaw in trade tensions, China’s Ministry of Commerce has offered an update on the ongoing discussions concerning the European Union’s investigation into subsidized Chinese electric vehicles. The news, reported today, confirms that negotiations are entering a crucial phase, raising hopes for a resolution.
According to a spokesperson, Minister Wang Wentao and European Commission Vice-President Maroš Šefčovič engaged in “professional and in-depth discussions” focused on the EV probe, marking progress towards a mutually agreeable solution. The focus is now sharply centered on price commitments.
While the spokesperson noted the price commitment discussions are in their final stages, reaching a successful conclusion requires dedication from both sides. Furthermore, the EU has floated the possibility of exploring alternative technological pathways, a proposal that China will evaluate from legal and technical standpoints.
Work groups have been instructed to intensify efforts to identify common ground for an acceptable resolution, in alignment with respective legal frameworks and World Trade Organization regulations, in order to resolve these trade differences.
Behind this latest update lies a backdrop of intensifying trade friction. The EU launched its anti-subsidy investigation back in 2022, triggered by a surge in Chinese EV exports to Europe.
Data from the China Association of Automobile Manufacturers (CAAM) revealed that China’s exports of new energy vehicles more than doubled in 2022. The incursion was significant: in Europe, roughly one in every ten new energy vehicles sold was of Chinese origin.
The investigation, initiated on September 13, 2023, by European Commission President Ursula von der Leyen, zeroed in on prominent Chinese manufacturers, including BYD, SAIC, and Geely.
In June 2024, the Commission unveiled preliminary findings, signaling its intention to impose provisional countervailing duties on imported Chinese EVs.
Come October of the same year, the EU member states gave the green light for the implementation, imposing duties of up to 35.3% on Chinese-made EVs, for a minimum of five years, on top of the existing 10% tariffs.
Specific duties varied. Tesla faced an additional 7.8% tax. BYD, Geely, and SAIC were subject to rates of 17%, 18.8%, and 35.3%, respectively. Other investigated producers who did not receive individual sampling would be charged 20.7%.
This would mean tariffs, post-implementation, could reach as high as 45.3% for Chinese EV manufacturers seeking to enter the European market.
However, potential for compromise arrived on April 3rd, when the Ministry of Commerce announced that the two sides would “re-launch price commitment negotiations on the anti-subsidy case of electric vehicles as soon as possible, to create a favorable environment for Chinese and European enterprises to carry out investment and industrial cooperation.”
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Original article, Author: Tobias. If you wish to reprint this article, please indicate the source:https://aicnbc.com/1970.html
