Preventing a trade war over EVs in the interest of China and EU

The European Union is scheduled to impose so-called anti-subsidy duties of up to 35.3 percent on Chinese-made electric vehicles from Thursday on top of the 10 percent import duty it already imposes on cars, but the two sides have intensified their efforts to prevent that from happening in order to avert a trade war.

China and the EU have reiterated their willingness to resolve the dispute over the latter's "anti-subsidy" investigations into Chinese-made EVs through dialogue. The two sides have also decided to make a commitment on price as a way to resolve the issue, according to a statement released by China's Ministry of Commerce after Commerce Minister Wang Wentao talked, via video links, with European Commission Executive Vice-President and Trade Commissioner Valdis Dombrovskis last Friday.

Observers both in China and the EU have urged the two sides to properly handle the case. Since Sept 20, intensive negotiations have been held between the two sides on the price commitment issue. And although some positive progress has been made in certain aspects, there remain significant differences between the two sides on issues of core concern to businesses both in China and the EU.

China will safeguard the legitimate rights and interests of its enterprises. And it is hoped that the two sides will continue to make efforts to break the deadlock and prevent a trade war. Henceforth, the talks on price commitment should be conducted based on mutual consideration of each other's core concerns, as Wang said.

The EU has put forward specific suggestions regarding the price commitment plan and proposed that technical teams from both sides engage in video consultations on the issue. That the Chinese side, in response, has agreed to immediately start the next stage of negotiations and welcomed the EU's technical team to visit China as soon as feasible shows Beijing is committed to settling the disputes with the EU through talks and preventing a tariff war.

The trade investigations by China against EU goods such as brandy, pork and dairy products were initiated at the request of domestic industries, and in full compliance with the World Trade Organization's rules. China will continue to conduct the investigations in accordance with its law and regulations, and safeguard the legitimate rights and interests of all parties involved.