Brussels and Beijing are close to reaching a solution on tariffs on imports of Chinese electric vehicles into the European Union, according to the president of the European Parliament’s trade committee told German media.
“We are close to an agreement: China could commit to offering electric cars in the EU at a minimum price,” Bernd Lange told n-tv, without going into details. “This would eliminate the distortion of competition caused by unfair subsidies, which is why tariffs were originally introduced.”
The European Commission was not immediately available for comment.
Last month, the European Union decided to raise tariffs on Chinese-made electric vehicles by up to 45.3% in its most high-profile trade investigation, a move that has divided Europe and sparked retaliation from Beijing.
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The tariffs, which took effect on October 30, were imposed to counter what the bloc considers unfair subsidies, including preferential financing, subsidies, and access to land, batteries and raw materials at below-market prices.
Despite the implementation of the tariffs, both sides have continued negotiations to find a solution, raising hopes, mainly among German automakers – which rely heavily on the Chinese market – of avoiding a trade conflict.
The Chinese Chamber of Commerce before the EU expressed at the time its deep disappointment at what it considered a “protectionist” and “arbitrary” measure by the EU.
With information from Reuters
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