Beijing shows goodwill, how determined is the EU?

Germany - a leading member of the European Union (EU) will abstain in the vote of EU member states on imposing temporary tariffs on Chinese-made electric cars, on July 15.

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.

The temporary imposition of tariffs of up to 37.6% on electric vehicles imported from China does not require the support of member states, but the final imposition of the tariffs could be blocked if a majority of eligible countries among the 27 EU members object.

Abstaining in this first stage would be seen as a show of support for Brussels as it continues negotiations with Beijing over the EU's biggest trade case 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 the statement, the ministry affirmed that China hopes the European side will show sincerity, promote the consultation process and reach a mutually acceptable solution as soon as possible.

“China is compelled to take all measures to safeguard its rights and interests against any serious acts of abusing the rules and suppressing China,” the statement said.

Earlier, EU Ambassador to China Jorge Toledo was quoted by the media as saying that Beijing 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.

The investigation was launched at the request of the National Chamber of Commerce for Import and Export of Machinery and Electronic Equipment, the ministry said. The complaint mainly covers products such as locomotives, photovoltaic and wind power equipment, 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