Negotiations Ease Concerns Over Rising Chinese Electric Car Prices in EU

Officials from China and the EU have taken steps towards easing concerns over potential spikes in Chinese electric car prices in the EU. Following discussions on Saturday, both sides agreed to negotiate a planned series of import taxes, though tensions persist.

The call between Trade Commissioner Valdis Dombrovskis and Chinese counterpart Wang Wentao marked the first formal negotiation since the EU threatened tariffs on Chinese electric vehicles of up to 38%. The EU argues these vehicles benefit unfairly from subsidies by the Chinese government, while China has accused the EU of protectionism and violating trade rules.

An EU spokesperson described the call as “candid and constructive,” emphasizing ongoing engagement in the weeks ahead. However, the EU remains firm on addressing what it sees as injurious subsidization in the Chinese electric vehicle sector.

China also reaffirmed its stance, expressing disagreement with the EU’s position. In addition to discussions with EU officials, Wang met with German Vice-Chancellor Robert Habeck to convey China’s strong opposition to the tariffs. China reiterated its readiness to defend its rights through legal action at the World Trade Organization.

Both sides appear committed to continuing negotiations, seeking a resolution to mitigate potential impacts on electric car prices in the EU.

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