Representatives from China and the European Union have failed to reach an agreement to cut EU tariffs on Chinese-made electric vehicles (EVs), Beijing said Saturday.
Brussels has accused Chinese carmakers of dumping cheap EVs on the EU market, undercutting domestically-made cars and threatening auto industry jobs in Europe.
The EU sees it as unfair competition fueled by Beijing’s huge subsidies to the auto sector. To offset this pressure, the EU is set to impose tariffs of up to 35.3% on imports of EVs produced in China.
China has warned of an all-out trade war if Brussels doesn’t back down. This week, Beijing slapped provisional tariffs on EU-made brandy.
‘Important progress’ made but still ‘major differences’
Following the eighth round of negotiations in Brussels since September 20, China’s Commerce Ministry issued a statement saying that “major differences” remained.
Negotiators had “made important progress in some areas,” the statement added, but “have not reached a solution acceptable to both sides.”
“It is hoped that the EU can meet China halfway, arrange to come to China as soon as possible, and accelerate the consultations with a constructive attitude, so as to reach a proper solution as soon as possible,” the statement continued.
China warns against talking to its automakers
China’s commerce ministry also warned EU negotiators against unilaterally setting prices with Chinese automakers outside of talks with Beijing.
“If the EU negotiates price commitments with some companies separately while negotiating with China, it will shake the foundation and mutual trust of the negotiations, interfere with the negotiations between the two sides, and be detrimental to the overall progress of the consultations,” the ministry said.
The ministry cited “relevant reports” but didn’t provide any evidence that Brussels is holding separate talks with its car companies.
This week, China proposed that EVs exported to Europe should be sold at a minimum price of €30,000 ($32,000).
Beijing had hoped this measure would avert the tariffs, which are due to be imposed next month. EU officials rejected the suggestion.
EU’s Charles Michel says deal could still come soon
European Council president Charles Michel, who leads the body that sets the EU’s political direction, met Chinese Premier Li Qiang on the margins of a Southeast Asian summit in Laos earlier this week.
Michel insisted the EU would no longer be “naive” about Chinese government subsidies, though he offered some hope that a solution could be ready within days or weeks.
“I have the impression that the door is not closed, but it’s a very difficult situation, it’s very challenging,” he told AFP news agency on Friday.
“We count on China to adapt its behavior and to understand that we have to rebalance the economic relationships for more fairness, for fair competition, for a more level playing field.”
China is already locked in a bitter trade war with the United States. Washington has put tariffs on billions of dollars of Chinese goods, including EVs, car batteries and solar cells.
The US has also restricted Chinese firms’ access to high-end US chips used to train artificial intelligence platforms.
mm/dj (AFP, AP, dpa, Reuters)
