Beijing and Brussels tariff talks on electric vehicles continue

Talks between Beijing and the European Union continue after major new EU tariffs on battery-powered electric vehicles from China entered into force last week, both sides said on Friday.

Both negotiators reported technical progress after “a week of intensive discussions” between European Commission and Chinese trade officials in Beijing.

According to a commission statement, talks focused on a possible agreement on a price commitment as an alternative to the additional tariffs of up to 35.3% on Chinese battery-powered electric vehicles that came into force on October 29.

The trade officials discussed “constructively and in depth how to establish a minimum import price for such a complex product, as well as tools to monitor and enforce the undertaking,” the statement said.

China’s Ministry of Commerce said the negotiations are to be continued via video link or other means.

From China’s perspective, the consultations help to maintain mutual trust, Beijing’s statement added.

The EU executive arm announced the extra tariffs in July after an investigation accused Beijing of subsidizing domestic electric car manufacturers and thus distorting the market in the EU.

The punitive trade measures were carried out despite strong opposition from Germany, amid concerns over retaliatory actions which could hurt the country’s major car industry.

German carmakers, which include brands like Volkswagen, BMW and Mercedes, generally opposed the tariffs as they have invested in the Chinese market and have relied heavily on sales there.

Talks between Beijing and the European Union continue after major new EU tariffs on battery-powered electric vehicles from China entered into force last week, both sides said on Friday.

Both negotiators reported technical progress after “a week of intensive discussions” between European Commission and Chinese trade officials in Beijing.

According to a commission statement, talks focused on a possible agreement on a price commitment as an alternative to the additional tariffs of up to 35.3% on Chinese battery-powered electric vehicles that came into force on October 29.

The trade officials discussed “constructively and in depth how to establish a minimum import price for such a complex product, as well as tools to monitor and enforce the undertaking,” the statement said.

China’s Ministry of Commerce said the negotiations are to be continued via video link or other means.

From China’s perspective, the consultations help to maintain mutual trust, Beijing’s statement added.

The EU executive arm announced the extra tariffs in July after an investigation accused Beijing of subsidizing domestic electric car manufacturers and thus distorting the market in the EU.

The punitive trade measures were carried out despite strong opposition from Germany, amid concerns over retaliatory actions which could hurt the country’s major car industry.

German carmakers, which include brands like Volkswagen, BMW and Mercedes, generally opposed the tariffs as they have invested in the Chinese market and have relied heavily on sales there.