On September 25, 2024, workers were producing pure electric vehicles at the Volkswagen (Anhui) factory in Hefei, China.
Chief Photography | Future Publishing | Getty Images
Industry observers say Beijing will avoid escalating its dispute with the European Union over electric vehicle tariffs, a day after China again sought a solution from the World Trade Organization.
Chinese The Commerce Department said on Monday With no breakthrough in bilateral talks, the company has lodged an additional appeal at the World Trade Organization over EU tariffs on its electric vehicles.
Shaun Rein, managing director of China Market Research, told CNBC that the move was “a warning to Europe that China is powerful, but it will not go too far.” as it seeks closer economic ties with Europe
Since tariffs Effective last WednesdayThe two sides explored the possibility of setting minimum price commitments to Chinese automakers as an alternative to tariffs. It is reported that the EU accounts for Accounting for more than 40% of China’s electric vehicle exports 2023.
Sam Radwan, chief executive of consultancy Enhance International, said China would “try its best and make every effort” to find a middle ground with the EU.
He says China-EU dispute is unlikely to escalate to level of dispute between Washington and Beijing -U.S. 100% tariff announced About China Electric Vehicles – Noting that the EU is heavily dependent on China in its electric vehicle value chain.
The EU has raised tariffs to Electric vehicles account for as high as 45.3% in China The following year-long investigation. These measures prompted Beijing to target Europe exports pork, dairy and brandy products.
European trade officials are still negotiating with their Chinese counterparts, European Commission Vice President Maros Sefcovic told a parliamentary committee on Monday. He described China as the EU’s “most challenging trading partner”, adding that the EU needed to “be more assertive in challenging China’s structural imbalances and unfair practices”.
“The EU is not interested in a trade war and we are seeking to rebalance our relationship with China in areas where we believe our relationship is unfair,” Sefcovic said.
China in August A complaint has been filed with the WTO Dispute Settlement Mechanism Oppose the EU’s subsidy tax on electric vehicles.
Eugene Hsiao, head of China automotive at Macquarie Capital, said China would “seek every possible avenue to force the EU to lower tariffs.” “If lower tariffs are agreed to, this could affect the level of investment by Chinese electric car manufacturers in local production in the EU.”
Reuters reported last week that China has asked its automakers to halt large investment plans, such as building factories in European countries that support tariffs. The report said automakers were “encouraged” to invest in countries that voted against the tariffs.
EU members including France, Poland and Italy supported the tariffs in October votes. Five member states, including Germany, the EU’s largest economy and a major car producer, voted against the tariffs.
Chinese Commerce Minister Wang Wentao reportedly urged France to “play an active role” in pushing the EU to find a solution acceptable to both Europe and the Chinese electric vehicle industry. Official reading of the King’s meeting Meeting with France’s junior trade minister Sophie Primas on Sunday.
Premium It is said that he told the king The EU will continue to trade with China but will not “give in to pressure on key issues”.
