EU rejects China’s proposals to prevent electric vehicle import duties

The European Commission has turned down China’s proposals to set minimum price thresholds or volume limits on electric vehicle (EV) imports, Trade spokesperson Olof Gill said. 

This decision comes as a setback for China’s efforts to negotiate and avoid substantial tariffs on its EVs, following the EU’s discovery of extensive Chinese subsidies affecting various stages of the EV supply chain, Caliber.Az reports via foreign media.

Gill announced at a news conference that the Commission evaluated the Chinese proposals to determine if they could mitigate the negative impacts of the identified subsidies and if the price commitments could be adequately monitored and enforced. He revealed that none of the proposals met these criteria, although the details of the offers remain confidential.

China’s Minister of Commerce, Wang Wentao, is scheduled to meet with EU Trade Chief Valdis Dombrovskis on September 19 in a last-ditch effort to reach a compromise.

While Gill reiterated the EU’s openness to finding a negotiated settlement, he emphasized that any proposal must comply with World Trade Organization regulations and address the subsidy issues effectively.

The outcome of this negotiation is particularly pressing as EU member states are set to vote on September 25 to approve the proposed duties, which range from 7.8 per cent to 35.3 per cent, designed to counteract the Chinese subsidies. Spanish Prime Minister Pedro Sánchez hinted during a recent visit to China that Spain might reconsider its stance, potentially influencing the vote.

Gill declined to comment on Sánchez’s potential shift in position and did not speculate on whether the Commission has sufficient support to secure the duties. To block the tariffs, a qualified majority of 15 EU countries, representing 65 per cent of the population, would be needed.