Brussels and Beijing have agreed to reconsider imposing additional tariffs on Chinese-made electric vehicles to resolve an ongoing dispute. Despite a failed attempt to reach a breakthrough in negotiations, both parties remain hopeful and have vowed to intensify discussions. Brussels accused Beijing of subsidizing Chinese electric vehicles, leading to unfair competition and proposed additional import tariffs ranging from 7.8% to 35.3%. Member states are set to vote on the tariffs before November, which could become permanent for five years if ratified.
Chinese officials have publicly criticized the Commission’s inquiry as protectionist, but behind the scenes, they have been seeking a negotiated solution to avoid steep tariffs. During a meeting in Brussels, both sides committed to re-examining price undertakings as a potential solution to avoid anti-subsidy tariffs. Meanwhile, China has been lobbying certain member states, such as Hungary and Germany, to vote against the tariffs.
Notably, Spain’s Prime Minister Pedro Sánchez recently called on the Commission to reconsider the proposal, signaling a potential shift in support for the tariffs. This move has been seen as a result of China’s lobbying efforts and recent economic deals between Chinese companies and European countries. Overall, the negotiations between Brussels and Beijing continue as both sides work towards finding a mutually acceptable solution to the dispute around electric vehicle subsidies.
Source
Photo credit www.euronews.com
