China, EU reach consensus on electric vehicle subsidies

China and the European Union have affirmed their commitment to addressing the discrepancies arising from the EU's investigation into Chinese electric vehicles and associated subsidies.

Following a video conference between Chinese Minister of Commerce Wang Wentao and European Commission Executive Vice-President and Trade Commissioner Valdis Dombrovskis, China's Ministry of Commerce issued a statement indicating that both parties have agreed to uphold price commitments as a pathway to resolving the issue, Caliber.Az reports citing Russian media.

This consensus marks a significant step toward mitigating tensions in trade relations between China and the EU.

Earlier, Wang Wentao warned that the European Union's anti-subsidy investigation into Chinese electric vehicles could undermine the confidence of Chinese companies in investing in European projects. From Beijing's perspective, the legitimacy and fairness of the EU's actions in this matter "raise many questions."

On July 4, the EU imposed tariffs on Chinese electric cars, ranging from 17.4 per cent to 37.6 per cent. These tariffs were implemented following a nine-month investigation aimed at countering "illegal subsidies," according to the European Commission. The EU's top executive emphasized that consultations with China on this issue have "intensified in recent months," with the European side aiming to reach a negotiated settlement in line with World Trade Organization rules.

By Vafa Guliyeva