Brussels and Beijing are revisiting price undertakings in an effort to avoid additional tariffs on Chinese-made electric vehicles. Despite a failed attempt to resolve the ongoing dispute over battery electric vehicles (BEVs), both parties are intensifying negotiations. Brussels accuses Beijing of subsidizing BEVs to gain a competitive advantage, prompting the proposal of additional import tariffs ranging from 7.8% to 35.3%. Member states must vote on these tariffs before November. While China publicly criticized the inquiry as protectionist, behind the scenes, officials are working to find a solution to protect domestic companies from the tariffs.
Chinese lobbying efforts are underway to sway member states to vote against the tariffs. Hungary and Germany, with its influential automotive sector, are key players in this decision-making process. Spain’s recent call for the Commission to reconsider the proposal has added a new dynamic to the situation. The Spanish Prime Minister’s remarks, following a significant deal with a Chinese company, have raised eyebrows in Brussels.
The meeting between Brussels and Beijing also highlighted a commitment to re-evaluate the option of price undertakings to control exports and avoid anti-subsidy tariffs. Despite the challenges, both sides remain committed to finding a solution through dialogue and consultation. The decision of member states on the proposed tariffs will have a significant impact on the future of EU-China trade relations.
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