BEIJING (Reuters) – China and Europe have held several rounds of technical negotiations over tariffs on Chinese electric cars, which the European Commission is expected to confirm on Thursday, China’s Commerce Ministry said at a regular news conference.
“So far, a number of consultations have been held between China and the European Union at the technical level,” said He Yadong, spokesman for the ministry.
“There is still a four-month period until the arbitration, and we hope that the European and Chinese parties will move in the same direction, show sincerity and continue the consultation process as soon as possible,” he added.
The Commission is expected to confirm provisional import tariffs of up to 37.6% on electric vehicles (EVs) produced in China, accusing the world’s second-largest economy of providing its companies with heavy state subsidies.
The EU’s trade policy has become increasingly protective amid concerns that China’s manufacturing-led development model could flood Europe with cheap goods as Chinese companies seek to boost exports amid weak domestic demand.
Beijing rejects accusations that Chinese electric cars are unfairly subsidized.
“The governments of some EU member states and some major automotive companies have repeatedly and explicitly opposed the EU’s anti-subsidy measures,” He Yadong said.
“China hopes that the EU will heed the EU’s own call, conduct consultations with China in a rational and pragmatic manner, and avoid countermeasures that will harm the mutually beneficial cooperation and joint development of the Sino-European auto industry,” he added.
EU countries are debating whether to back additional tariffs on electric cars made in China, underscoring the challenge for Brussels to win support for its biggest trade deal yet as Beijing threatens far-reaching retaliation.
The issue will be put to the 27-member bloc in an advisory vote in the coming weeks.
Germany, whose automakers generated a third of their sales in China last year, reportedly wants to scrap the tariffs, while France is among the biggest proponents.
China is conducting an anti-dumping investigation into European brandy imports. Nearly all EU brandy exports to China came from France last year, Chinese customs data show.
Beijing has also launched an anti-dumping investigation into imports of European pork and pork by-products. Analysts say the probe is aimed at pressuring Spain, the Netherlands and Denmark not to agree with the Commission on the restrictions.
(Reporting by Joe Cash and the Beijing news staff; Editing by Christopher Cushing and Barbara Lewis)
