The latest round of talks between China and the European Union regarding tariffs on Chinese electric vehicles (EVs) has ended without any resolution. According to China’s Ministry of Commerce, significant differences still exist between the two sides. The discussions, held in Brussels, focused on the newly imposed tariffs by the EU on Chinese-made electric cars.
The EU recently introduced a 35.3% tariff on electric vehicles imported from China, which affects all 27 member countries. The tariffs were enacted following concerns over China’s subsidies for its domestic industries, which the EU claims distort fair competition. China has denied these allegations, warning that the tariffs could lead to a trade war.
Despite eight rounds of talks, which have been ongoing since September 20 in Brussels, no agreement has been reached. However, the Chinese side noted some “important progress” on certain issues and invited EU negotiators to continue the discussions in Beijing in the next phase.
China and the European Union are key trading partners, but tensions have risen over the subsidies China provides to its domestic industries, including those producing electric vehicles. The EU argues that these subsidies allow Chinese products to be sold at lower prices, undercutting European competitors.
In response to the EU’s tariffs, China recently imposed temporary duties on brandy produced in EU countries, particularly affecting French manufacturers. Additionally, the EU has launched investigations into subsidies for Chinese-made solar panels and wind turbines.
Amid these ongoing tensions, European Council President Charles Michel met with Chinese Premier Li Qiang in Laos this week. Michel reported that their discussions were open, and he expressed hope that an agreement could be reached in the coming days or weeks. However, he acknowledged that reaching such an agreement would be challenging.