China "backs down", signals readiness to reduce tensions with EU

Beijing affirmed its continued close cooperation with the EU to reach a solution that aligns with common interests.

China has proposed negotiations with the EU to resolve the issue of electric vehicle tariffs. (Source: Getty Images)

During a meeting with senior trade officials from the European Commission (EC) on September 9, Chinese Vice Minister of Commerce Li Fei stated that China is ready to engage in dialogue and consultations to resolve economic and trade disagreements with the European Union (EU).

The Chinese Ministry of Commerce emphasized that the issue of subsidies for Chinese electric vehicles is quite "complex" and poses many significant challenges in reaching an agreement.

According to the ministry, Beijing is ready to continue to cooperate closely with the EU to reach a solution that is in the common interest and complies with the rules of the World Trade Organization (WTO), in order to promote the healthy and stable development of economic and trade relations between the two sides.

These negotiations are taking place as the world's second-largest economy seeks to eliminate proposed tariffs on its electric vehicles.

Last week, China signaled its willingness to de-escalate tensions by not imposing provisional anti-dumping measures on EU brandy.

According to sources close to the matter, the 27-member bloc will reduce taxes on Tesla electric vehicles and slightly lower taxes on other electric vehicles from Beijing, after considering feedback from businesses.

Specifically, the tariff on Tesla vehicles will decrease from 9% to 7.8%. For BYD, the tariff remains unchanged at 17%. For Geely, the new tariff is 18.8%, down from the previous 19.3%. The highest tariff of 35.3% will be applied to SAIC and companies that did not cooperate in the EU investigation.

The final tax proposal will have to be voted on by all 27 EU member states. The tax will be implemented unless at least 15 member states, representing 65% of the bloc's population, vote against it.

Previously, on August 20, the EC announced plans to impose import tariffs of up to 36% for five years on Chinese electric vehicles unless China could offer an alternative solution to the trade dispute related to state subsidies.

Source: https://baoquocte.vn/trung-quoc-xuong-nuoc-danh-tieng-san-sang-giam-cang-thang-voi-eu-285826.html