EU Trade Commissioner Valdis Dombrovskis reported positive progress in discussions with Chinese Commerce Minister Wang Wentao on Thursday. The talks come as China aims to negotiate an agreement with the European Union to prevent the imposition of high tariffs on electric vehicles (EVs) exported to EU countries.
The meeting took place amid increasing divisions within Europe over proposed tariffs, with Spain calling on the EU last week to "rethink" plans for duties of up to 36 percent on Chinese electric vehicles, aligning with Germany in its opposition.
"Constructive meeting with Minister of Commerce Wang Wentao. Both sides agreed to intensify efforts to find an effective, enforceable and WTO (World Trade Organization) compatible solution," Dombrovskis said on X.
Wang also spoke to businesses in the EV sector on Wednesday in Brussels after which he said in a statement that China "[would] certainly persevere until the final moments of the consultations".
According to the statement by the Chinese Ministry of Commerce, the two sides engaged in "comprehensive, in-depth and constructive consultations on the EU's anti-subsidy case for electric vehicles against China.
The statement added that both sides "expressed their political will to resolve their differences through consultations, agreed to continue to push forward the negotiations on the price commitment agreement."
Are EU tariffs on Chinese electric vehicles a sign of weakness?
Import duties
The European Commission in July announced plans to levy import duties on EV imported from China after an anti-subsidy investigation started last year found they were unfairly undermining European rivals.
The EU wants to protect its automobile industry, a jewel in Europe's industrial crown providing jobs to around 14 million people.
The commission is in charge of trade policy for the 27-country bloc.
The tariffs are currently provisional and will only become definitive for five years after a vote by member states that should take place before the end of October.
According to Politico, a vote was originally planned for 25 September, but delayed after the visit to Brussels by Wang Wentao was announced. According to the magazine, the vote is now likely to take place in the week of 30 September.
'Questionable allegations'
China angrily responded to the EU's plans, warning it would unleash a trade war. Last month China also filed an appeal with the WTO over the tariffs.
Beijing has already launched its own investigations into European brandy, some dairy, and pork products imported into China.
Dombrovskis told Wang that the probes were "unwarranted, are based on questionable allegations, and lack sufficient evidence", the EU's trade spokesperson Olof Gill said.
"(He) thus called for these investigations to be terminated and informed the Chinese side that the EU will do its utmost to defend the interests of its industries," Gill added in a statement.
Earlier this week, Wang said the European Union's imposition of tariffs on EV will "seriously interfere" with trade and investment cooperation and hurt both China and Germany.
In talks on Tuesday with German Vice Chancellor and Economic Minister Robert Habeck, he said he hoped to reach a solution in line with World Trade Organisation rules as soon as possible, and avoid the escalation of China-EU economic and trade frictions, according to a statement released by China's Ministry of Commerce early on Wednesday.
The European Commission is on the verge of proposing final tariffs of up to 35.3 percent on EVs built in China, on top of the EU's standard 10 percent car import duty.
Wang is visiting Europe for talks on the EU's anti-subsidy case against Chinese-made EVs ahead of a vote on more tariffs.
Wang said it is hoped that Germany will proceed from its own interests and push the European Commission and China to work in the same direction.
EU struggles to come out on top in systemic rivalry with China
Habeck said that Germany supports free trade, welcomes Chinese auto and parts companies to invest in Europe, and will urge the European Commission to find an appropriate solution with China and make every effort to avoid trade conflicts, according to the ministry statement.
(With newswires)
