According to Bloomberg, Olof Gill, spokesperson for trade and agriculture at the European Commission, stated that EU trade chief Valdis Dombrovskis and Chinese Commerce Minister Wang Wentao held a video call on October 25 to discuss ongoing China-EU negotiations regarding electric vehicle tariffs. Both parties agreed to continue technical discussions in the near future.
China described the video conference as "frank and constructive." While progress has been made in certain areas, the Chinese Ministry of Commerce stated that significant differences remain on key issues of mutual concern.
China agreed to initiate the next round of talks promptly and welcomed a visit from the European delegation. Wang Wentao called for continued discussions on a balanced and pragmatic electric vehicle export price commitment agreement, aiming for a "substantial breakthrough" soon.
The discussions included a potential agreement on a price commitment mechanism-a complex arrangement to regulate export prices and quantities intended to replace anti-subsidy tariffs. The EU reiterated that any solution must comply with World Trade Organization (WTO) rules, sufficiently offset the effects of Chinese subsidies, and enable EU regulatory compliance.
The EU trade commissioner highlighted that under WTO rules, the EU could reach price commitments with individual companies. According to the statement, EU negotiations with the China Chamber of Commerce for Import and Export of Machinery and Electronic Products do not preclude talks with individual exporters.
The EU has sought separate pricing agreements with certain automakers, but China has cautioned exporters against seeking individual deals, advocating instead for a unified agreement for all manufacturers.
After eight rounds of negotiations, the EU states that a "significant gap" remains between both sides. If an agreement is not reached by October 30, Chinese electric vehicles could face import tariffs of up to 45% within the EU.
In response to the EU's proposed tariffs, China has examined EU imports of dairy products, pork, and brandy and raised the possibility of taxing large-engine cars.