China’s Ministry of Commerce (MOFCOM) said on Friday it held talks with the European Union on tariffs imposed on Chinese-made electric vehicles, as well as broader economic and trade relations.
Minister of Commerce Wang Wentao spoke with European Commissioner for Trade and Economic Security Maroš Šefčovič on Thursday about “trade remedy cases,” which included “anti-subsidy investigation into electric vehicles,” export controls and market access.
Last October, China had proposed setting a minimum price of €30,000 for Chinese-made electric vehicles sold in Europe.
However, the EU rejected the proposal, arguing that the problem went beyond pricing and insisting on the state subsidies that distort fair competition in the European market.
Chinese brands doubled their share of the European car market in April despite tariffs that can be as high as 35% for some manufacturers, including SAIC Group, which owns the MG brand, according to data released this week by research firm JATO Dynamics.
The Ministry said on Friday that both China and the EU have “agreed to pull in the same direction and make preparations on the trade and economic front for key agendas between China and the EU this year.”
Earlier this month, as Minister Wang met with Šefčovič in France, a statement by MOFCOM stated that negotiations took a “big step forward in the right direction of a proper resolution,” in respect of national laws and World Trade Organization rules.
China has agreed to fast-track approvals for qualified rare earth exports to Europe — which had been restricted in May, in retaliation against new U.S. tariffs.
The talks on Thursday took place just days after the Financial Times reported that the EU refused to hold an important economic meeting with Beijing ahead of next month’s leaders’ summit.
The media outlet cited several sources familiar with the matter, who said that progress on several trade disputes had stalled.
China’s Foreign Ministry spokesperson Guo Jiakun reacted to the report on Tuesday, stating that “deepening dialogue and co-operation between China and the EU benefits both sides.”
Guo pointed out that global relations are becoming “increasingly turbulent”, with “rising unilateralism and economic bullying.”
The ministry added, “We are ready to cooperate with the EU to support the stable and long-term development of China-EU relations.”
Last year, the EU imposed tariffs on Chinese electric vehicle imports after determining the industry received significant government subsidies, which led to unfair trade in the region.
In April, as Trump’s new tariffs took place, EU Trade Commissioner Sefcovic and China’s Commerce Minister Wang agreed to investigate the possibility of setting minimum prices for the imported EVs as an alternative to tariffs.
