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eu officials say china and the eu can still continue negotiations after raising taxes on chinese electric vehicles

2024-10-01

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[text/observer network qi qian] according to reuters, on september 30, local time, martin lucas, director of the trade defense department of the european commission, said that even after imposing additional tariffs on chinese electric vehicles, the european commission will still we are willing to continue negotiations with china to reach a potential agreement to avoid the imposition of tariffs.

according to reports, the eu plans to hold a final vote on october 4, local time, to decide whether to impose additional tariffs on chinese electric vehicles.

lucas told the european parliament that day that technical negotiations with china have escalated to almost daily and may continue beyond the end of october. he said: "the end of the investigation does not necessarily mean the end of consultations with china to find solutions. the investigation has its own legal deadline and we cannot miss it. clear measures must be in place by october 31."

"after the legal deadline, price commitments or any other solutions may still be accepted," lucas said, adding that the chinese carmaker submitted a revised offer, which has so far not been accepted despite some progress. .

three other people familiar with the matter revealed that the european commission has submitted a draft of the final tariffs to the 27 member states. the tariff levels advocated by the proposal are consistent with those calculated by the european commission earlier in september, which proposed a minimum tariff of 7.8% and a maximum of 35.3%.

sources said that at the same time, the european commission also added an additional text to the draft, saying that negotiations with china so far have not resolved the dispute over so-called "subsidies", but even if eu countries agree to tariff rates, there is a possibility of reaching a compromise. negotiations may still continue.

with the rapid rise of china's automobile industry, in october last year, the european commission announced that it would "take action" against chinese electric vehicles and launched a countervailing investigation. in july this year, the european commission announced a preliminary ruling to impose temporary countervailing duties of 17.4% to 37.6% on chinese electric vehicles.

reuters reported that in early september, the european commission was revealed to have made slight adjustments to the proposed tax rates. the tariffs imposed on tesla were 7.8%, byd was 17%, and geely was 18.8%. other car companies such as saic will apply tariffs of up to 35.3%. tax rate.

on october 4, local time, eu member states will hold a final vote on this matter. if a majority of member states (15 countries representing 65% of the eu population) fail to block the measures, the european commission will publish final rules on the five-year tariffs by october 30.

many industries in the eu have already panicked. german car manufacturers, the pork products industry, french brandy producers, and the european dairy industry are all "deeply worried" about the upcoming impact of the eu decision. many eu countries, including germany and spain, are opposed to this decision and are reportedly "stepping up to lobby other member states to vote against" at the last moment.

but a source familiar with the matter said earlier that germany was leaning towards abstaining from the final vote. however, the person also emphasized that since the german government had not yet seen the final draft text at that time, it had not yet made a formal decision. now that member states have received the proposed draft, berlin's direction remains to be seen.

since june this year, china has been maintaining communication and consultation with the eu on the eu’s anti-subsidy case against china’s electric vehicles. on september 12, the spokesperson of the european commission claimed that the price commitment solutions submitted by the china chamber of commerce for machinery and electronics and all electric vehicle manufacturers regarding the eu electric vehicle countervailing case did not meet the requirements, and the european side planned to reject the relevant price commitment application.

according to the website of the ministry of commerce, chinese minister of commerce wang wentao met with european commission executive vice president and trade commissioner dombrovskis at the eu headquarters on the 19th to conduct a comprehensive, in-depth and constructive discussion on the eu’s anti-subsidy case against china’s electric vehicles. consultation. the two sides clearly expressed their political will to resolve differences through consultation, agreed to continue promoting negotiations on the price commitment agreement, and were fully committed to reaching a solution acceptable to both parties through friendly dialogue and consultation.

china pointed out that the european commission launched an electric vehicle countervailing investigation without an application from the eu industry and ruled that it was illegal, unreasonable and unfair. china cannot agree or accept this, but it has always upheld the utmost sincerity and strived to properly resolve the issue through dialogue and consultation. the chinese industry proposed a price commitment solution within the time limit of the investigation process of this case, and further improved it based on the concerns of the european side, fully demonstrating maximum flexibility and sincerity.

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 take positive actions to meet each other halfway. if the eu insists on implementing unreasonable taxation measures, china will firmly make necessary responses to safeguard the legitimate rights and interests of enterprises.

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