China and the EU failed to reach a compromise in their dispute over electric vehicles (EVs) during talks held yesterday in Brussels.
The Chinese commerce ministry said that both sides had “clearly expressed their political will to resolve differences through consultations,” but cautioned that further EU attempts to further impose “unreasonable tax measures” would meet with a stern response.
Both sides have renewed a commitment towards further negotiations, the South China Morning Post reports, adding that Beijing may have to commit to a minimum price on China-made EVs to allay European fears of unfair competition. However, the Post reported that “EU insiders” were doubtful that the Chinese side would come up with an acceptable offer.
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The talks are taking place as tariffs loom for Chinese EVs exported to the bloc, with Brussels threatening imposts of up to 35.3 percent (compared to 7 percent for a Tesla). Such tariffs would be in addition to the 10 percent already levied by the EU on EV imports.
The bloc is threatening such a move because it claims that state subsidies given to Chinese EV makers enables them to sell their products for lower prices than those of other manufacturers – a claim that Beijing has strongly denied.
If a compromise is not reached, the tariffs will be imposed before the end of next month.
