Beijing shows goodwill, how determined is the EU?

Germany, a leading member of the European Union (EU), will abstain from voting in the EU member state vote on July 15th to impose temporary tariffs on electric vehicles manufactured in China.

Chinese electric cars entering Europe are subject to temporary tariffs of up to 37.6%. (Source: FT)

This is the first test of EU member states' support for Brussels' landmark trade case.

Imposing a provisional tariff of up to 37.6% on electric vehicles imported from China does not require the support of member states, but the final tariff could be blocked if a majority of eligible countries among the 27 EU members oppose it.

Abstaining from voting in this first phase means supporting Brussels as the organization continues negotiations with Beijing on the EU's biggest trade dispute to date.

The EU has slapped tariffs on Chinese electric cars over “unfair state subsidies,” despite Beijing’s warning that the move would trigger a trade war. The EU has launched an investigation by 2023 into Chinese electric car makers to see if state subsidies unfairly undercut the prices of EU carmakers.

Earlier on July 8, China's Ministry of Commerce said the country had shown "utmost sincerity" in consultations related to the EU's investigation into electric vehicle subsidies, while emphasizing that comments attributed to an EU official were "completely inconsistent with the facts."

In its statement, the ministry affirmed that China hopes the European side will demonstrate sincerity, promote the consultation process, and reach a mutually acceptable solution as soon as possible.

The statement read: “China is compelled to take all measures to protect its rights and interests against any serious abuse of rules and suppression of China.”

Earlier, EU Ambassador to China Jorge Toledo was quoted by the media as saying that Beijing had only recently responded to the EU's request for negotiations.

In the latest move from China, on July 10, China announced its next steps after the EU added temporary tariffs on imported electric vehicles. Accordingly, the announcement on the official website, the Chinese Ministry of Commerce said that the Ministry will launch an investigation on trade and investment barriers, regarding relevant regulations that the EU has applied in the anti-subsidy investigation against Chinese companies.

According to the ministry, the investigation was conducted at the request of the National Chamber of Commerce for Import and Export of Machinery and Electronic Equipment. This complaint mainly concerned products such as locomotives, photovoltaic equipment, wind power, and security inspections.

The investigation is likely to last until January 10, 2025, but could be extended by three months in exceptional circumstances.

Source: https://baoquocte.vn/danh-thue-xe-dien-trung-quoc-bac-kinh-the-hien-thien-chi-cao-eu-cuong-quyet-den-dau-278578.html