China Pressures EU To Revoke EV Tariffs By July 4

Beijing is urging the European Union to revoke preliminary tariffs on Chinese electric vehicles (EVs) by July 4, according to a report by China’s state-controlled Global Times. This demand follows an agreement between the two parties to initiate new trade discussions.

The EU’s provisional tariffs, which could reach up to 38.1% on imported Chinese EVs, are set to take effect on July 4 as the bloc investigates alleged unfair subsidies provided to Chinese EV manufacturers. China has consistently urged the EU to cancel these tariffs and expressed a willingness to negotiate, emphasizing the desire to avoid another tariff conflict, especially in light of the U.S. tariffs on Chinese goods imposed during the Trump administration. However, Beijing has also stated it will take all necessary measures to protect its companies if a trade war ensues.

The decision to hold talks was made following a call between EU Commissioner Valdis Dombrovskis and Chinese Commerce Minister Wang Wentao. This conversation coincided with a visit to China by Germany’s economy minister, who indicated that the opportunity for dialogue remains open.

Observers cited by Global Times suggest that the optimal outcome of these talks would be the EU’s cancellation of its tariff decision before the July 4 deadline. The publication warned that the EU’s protectionist stance could provoke countermeasures from China, leading to detrimental outcomes for both sides.

The EU’s anti-subsidy investigation is set to conclude on November 2, at which point the tariffs could become permanent. China has denied the accusations of unfair subsidies, attributing the growth of its EV industry to technological, market, and supply chain advantages.