Chinese and European Union authorities are considering alternatives to the proposed European tariffs on Chinese electric vehicles (EVs), such as setting minimum sales prices for EVs in Europe. But according to EU officials, no agreement is being negotiated.
Bernd Lange’s assertion that an agreement was nearly complete was refuted by anonymous EU officials. Lange is the head of the trade committee of the European Parliament. They stressed that while negotiations with Beijing are ongoing, some significant issues still need to be resolved.
One of the options under consideration is imposing a minimum price on electric vehicles imported from China. Following a comprehensive analysis, the EU concluded that Chinese state subsidies were the reason behind the artificially low pricing of these cars.
The European Union raised tariffs on Chinese-made electric cars (EVs) to 45.3% this month in response to subsidies, citing worries about unfair competition and market distortion in its most well-known trade investigation. Trade relations were further strained as a result of the division this action produced in Europe and the remedies Beijing took in response.
The “protectionist” and “arbitrary” EU action at the time deeply disappointed China’s Chamber of Commerce to the EU, which warned that such actions could disrupt global supply chains, increase trade tensions, and impede future economic cooperation between the two areas.
