The European Union and China have agreed to proceed with further technical discussions on potential alternatives to tariffs on China-manufactured electric vehicles, despite notable differences, according to the European Commission.
As part of an anti-subsidy investigation, the EU is set to implement tariffs of up to 35.3% on Chinese-built EVs next week but remains open to ongoing negotiations.
The two sides are exploring options such as minimum pricing commitments from Chinese manufacturers or increased investment in Europe as possible substitutes for tariffs.
“Principal negotiators agreed to resume technical talks soon,” the Commission noted after a video meeting between EU Trade Commissioner Valdis Dombrovskis and Chinese Commerce Minister Wang Wentao.
The European Commission, which manages trade policy for the 27-member EU, has already held eight rounds of discussions with Chinese officials but acknowledged that “significant gaps” remain.
China Cautions Against Engaging Automakers Directly
In the call, Dombrovskis and Wang expressed their dedication to finding a mutually acceptable solution that would ensure fair competition in the EU market while aligning with World Trade Organization rules, the Commission reported.
China recently urged the EU to avoid separate talks with individual automakers, warning this approach could “undermine the foundations” of negotiations.
Dombrovskis stressed that discussions with the China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCME) do not preclude talks with individual exporters.
Additionally, Dombrovskis raised EU concerns regarding China’s investigations into EU exports of brandy, pork, and dairy, stating that the EU considers these investigations “unjustified.”