China Seeks French Assistance To Address EU EV Tariff Challenges

China has called on France to play a proactive role in encouraging the European Commission to find a mutually acceptable solution for both European and Chinese electric vehicle (EV) industries. This request comes from the Chinese commerce ministry, following a meeting in Shanghai between Wang Wentao, the Chinese commerce minister, and Sophie Primas, France’s junior trade minister.

Concerns Over EU Investigations

During their discussions, Wang emphasized that the European Union’s ongoing investigation into Chinese-made electric vehicles is a significant issue that has “seriously hindered” cooperation between the Chinese and European automotive sectors. The EU initiated an anti-subsidy investigation into imports of Chinese battery EVs last year, and in October, it voted in favor of implementing tariffs on these vehicles.

Tit-for-Tat Trade Measures

In retaliation, China has responded by launching its own trade investigations against EU products, including pork and dairy. Additionally, at the start of November, China imposed temporary anti-dumping measures on EU brandy. Primas is currently in China for a three-day visit to address these import duties, which Paris deems political and unwarranted.

Wang’s Stance on Trade Remedies

Wang defended China’s actions regarding the investigations into EU products, stating that they were in line with the applications from the domestic industry and compliant with World Trade Organization (WTO) regulations. He criticized the EU’s approach to its EV probe as “rash,” highlighting the contrast in how both regions handle trade remedies.

Potential for Cooperation

Despite the tensions, Wang expressed China’s willingness to collaborate with the European Commission to reach an appropriate resolution, although he did not provide specific details on what that might entail.

Ongoing Investigations

This year, the EU decided to increase tariffs on Chinese-built electric vehicles to as high as 45.3% following a prominent investigation that has sparked division within Europe and led to retaliatory measures from China. In response to these tariffs, Chinese automakers have been instructed to halt significant investments in European countries that support these additional duties.

(Includes inputs from online sources.)

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