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new developments in china-eu tariff negotiations: foreign media: eu may review "price commitment"

2024-09-21

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[global times reporter ni hao, global times special correspondent in germany qing mu] new developments in china-eu electric vehicle tariff consultations. on the 20th, german "manager magazine" used "constructive dialogue" to describe the latest talks between chinese minister of commerce wang wentao and european commission executive vice president and trade commissioner valdis dombrovskis on the 19th. the report said that the prospects for resolving the dispute between the eu and china over punitive tariffs on electric vehicles are improving: the initial discussions between the two sides are clearly promising. reuters said on the 20th,european commissionthe eu and china agreed to step up efforts to avoid the eu imposing import tariffs on chinese-made electric vehicles, and may review the minimum price commitment previously rejected by the eu.

according to the ministry of commerce of china, wang wentao met with dombrovskis at the eu headquarters on the morning of the 19th to conduct comprehensive, in-depth and constructive consultations on the eu's anti-subsidy case against china's electric vehicles. both sides clearly expressed their political will to resolve differences through consultations, agreed to continue to promote negotiations on the price commitment agreement, and fully committed to reaching a solution acceptable to both sides through friendly dialogue and consultations.

euronews reported on the 19th that the "most striking progress" in the eu-china consultations on thursday was the commitment of both sides to re-evaluate the price commitment option. the report said that the price commitment is a trade tool that companies can use to raise prices and control export quantities to avoid anti-subsidy tariffs.

on august 24, the chinese industry proposed a price commitment solution within the time limit of the eu investigation procedure, fully considering the eu's demands and showing maximum flexibility. however, a spokesperson for the european commission said on september 12 that the price commitment solutions submitted by the china chamber of mechanical and electrical engineering and all electric vehicle manufacturers did not meet the requirements, and the eu intends to reject the relevant price commitment application.

the chinese minister of commerce recently traveled to europe to hold consultations with the eu again, which attracted attention from the outside world. according to afp, after the consultations between china and the eu, dombrovskis said on the social platform x: "the talks with chinese minister of commerce wang wentao were constructive. both sides agreed to increase efforts to seek an effective, enforceable and world trade organization-compliant solution to the electric vehicle issue." euronews believes that china and the eu are committed to resolving the electric vehicle trade dispute, but have failed to make a breakthrough due to obvious differences. however, given the commitment of both sides to intensify negotiations, there is still hope. brussels will provide chinese automakers with a new opportunity to set a minimum price for their products.

earlier, it was reported that the 27 eu member states will hold a vote on september 25 to decide whether to convert the temporary tariffs imposed on chinese electric vehicles in early july into permanent tariffs for at least five years. however, according to a report by the european version of the u.s. "politico" on the 18th, three eu diplomats said that the eu's vote originally scheduled for the 25th has been canceled and a new voting date has not yet been determined.

sun xiaohong, secretary general of the automobile internationalization committee of the china chamber of commerce for import and export of machinery and electronic products, said in an interview with the global times on the 20th that after china has always maintained its utmost sincerity and went to europe for consultations again, the eu changed its previous intention to reject china's price commitment and agreed to continue to promote the negotiations, sending out some positive signals. sun xiaohong believes that the essence of china-eu economic and trade cooperation is mutual benefit and win-win results. the consequences of the escalating trade frictions will not only damage china's interests, but also go against the interests of europe. based on the principle of maximizing its own interests, the european commission will also show a certain degree of flexibility in adjusting its policy stance.

however, according to reuters, dombrovskis claimed that the eu anti-subsidy investigation is based on facts and aims to allow competition and a fair competitive environment. he also stressed that the eu's procedures for imposing tariffs on chinese imports are still moving forward. in a message released late at night on the 19th, the chinese ministry of commerce stated that china urges the eu to earnestly implement the important consensus reached by the leaders of china, france and the eu on properly handling economic and trade frictions through dialogue and consultation, and to take positive actions to meet each other halfway. if the eu insists on implementing unreasonable tax measures, china will firmly make necessary responses to safeguard the legitimate rights and interests of enterprises.

sun xiaohong believes that from the perspective of global response to climate change and the eu's green transformation goals, the eu has no reason not to cooperate with china, which is also in the common interests of both sides. china certainly hopes to see a solution acceptable to both sides through dialogue and consultation, but it is still impossible to judge the eu's final choice. sun xiaohong said that in any case, china's position is consistent. on the one hand, it will negotiate with the eu with the utmost sincerity; on the other hand, if the eu insists on imposing tariffs, china will also take all necessary measures to resolutely safeguard china's core interests and the legitimate rights and interests of enterprises.