Beijing's trade mission in Europe addresses potential EV tariffs

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Beijing's senior trade official, Commerce Minister Wang Wentao, visited Europe this week to engage in discussions aimed at preventing impending special tariffs on Chinese electric vehicles (EVs). The meetings, including one with EU Trade Commissioner Valdis Dombrovskis, focused on finding a mutually agreeable solution regarding these tariffs, which the European Commission has proposed following an investigation into Chinese subsidies for battery electric vehicles (BEVs).

The investigation, launched in October 2023, concluded that these subsidies were harming the EU industry. Consequently, the European Commission imposed provisional countervailing duties ranging from 17.4% to 38.1% on Chinese EVs in June, based on the extent of the subsidies identified. Tesla has been exempted from these tariffs due to its production levels in Shanghai.

While China has criticized the EU's actions as politically motivated, efforts to build support among EU member states have intensified. A vote on the punitive tariffs is expected before the end of October, requiring a significant number of countries to oppose them to prevent implementation.

During his tour, Wang also met with German Economy Minister Robert Habeck, who emphasized the need for fair competition and a political resolution. Despite the complexities of the situation, China remains committed to negotiating and addressing its trade relations with the EU.