- China could work with Germany to convince the EU to come to the negotiating table.
- The European Union’s new tariffs on Chinese-made EVs will come into force on July 4.
- A European Commission spokesperson says it’s open for negotiations.
Chinese officials are trying to sweet-talk the Germans to convince the European Union to scrap plans to hit Chinese-made EVs with pricey new tariffs.
During recent discussions between Chinese Commerce Minister Mang Wentao and German counterpart Robert Habeck in Beijing, Wentao suggested the country could lower existing tariffs on large-engine cars if the EU ditches its EV levies. This comes after China has threatened to slap a 25% import duty on European cars with combustion engines larger than 2.5 liters.
Read: EU Tariffs On Chinese EVs Could Cost Beijing $4 Billion In Trade
Germany has opposed the EU’s new tariffs, and China is thought to be hopeful it can convince the country to pressure other EU members. Speaking about the tariffs earlier this week, German Chancellor Olaf Scholz said he wanted the two sides to negotiate and said there’s time to strike a deal before the tariffs are introduced on July 4.
“However, it is clear that we will also need serious movement and progress from the Chinese side,” he said.
According to the head of trade policy at the Hinrich Foundation, Dr. Deborah Elms, the EU can postpone the introduction of the new tariffs if it decides to negotiate.
“The EU could always opt to postpone the imposition of tariffs, pending the outcome of negotiations,” she told The Straits Times. “As long as the two sides are making sufficient progress towards an answer, it’s possible to stop the clock.”
European Commission spokesman Olof Gill says the EU is open to negotiations.
“The two sides agreed to engage on the basis of facts and in full respect of WTO rules,” he said. “The EU side emphasized that any negotiated outcome to its investigation must be effective in addressing the injurious subsidization.”
Under the new tariffs announced in June, Chinese EV manufacturer SAIC will be hit with an additional 38.1% tariff on top of the existing 10% tariff it already pays. Tariff hikes of 17.4% and 20% were announced for BYD and Geely, respectively. The tariffs will vary between 21% and 38.1% for other EV makers.
