China and the EU are holding talks to find an alternative solution to replace the tariffs recently imposed on Chinese electric vehicles.
However, no agreement has yet been reached and negotiations are expected to continue, notes a Euronews publication.
China’s Ministry of Commerce spokesman responded to a reporter at a press conference, stating that negotiations on setting a minimum price had made some progress following concerted efforts by both sides.
You may also read: China Agrees with European Union to Eliminate Electric Vehicle Tariffs
China expressed hope that both sides would work together, being “pragmatic and balanced,” taking into account each other’s legitimate concerns, responding to the expectations of stakeholders in both China and the EU, and striving to reach a satisfactory outcome.
White Smoke?
A few days ago, the Chairman of the European Parliament’s Trade Committee, Bernd Lange, stated in an interview that “we are close to a deal“: China could commit to offer electric cars in the EU at a minimum price. This would eliminate the distortion of competition through unfair subsidies, which is why the tariffs were introduced in the first place.”
In September, the European Commission rejected proposals by Chinese electric vehicle manufacturers to set a minimum price. The Commission commented that the solution cannot “eliminate the harmful effects of subsidies.”
The European Commission decided to increase tariffs on Chinese-made electric cars to 45.3% as of October 30, after narrowly winning the approval of all 27 EU member states. The decision followed several rounds of proposed tariff reductions.
The levy on Chinese-made Teslas has been reduced from 9% to 7.8%, following an earlier cut of 20.8%.
The tariff on the best-selling Chinese brand, BYD, stands at 17%. Tariffs on Geely have been reduced to 18.8% from 19.3%, while those on SAIC and companies that did not cooperate with EU investigations have been reduced to 35.3% from 36.3%.
