EU Commission Approves Anti-Subsidy Tax on Chinese EVs; China-EU Talks to Resume Oct 7

According to relevant reports, on October 4th, representatives of EU member states voted to pass the final draft of the EU's anti-subsidy case against electric vehicles from China, submitted by the European Commission, proposing to impose a final anti-subsidy duty on electric vehicles originating from China.

The spokesperson for the Ministry of Commerce responded to reporters' questions, stating that China has taken note of the relevant reports. Regarding the EU's anti-subsidy case against Chinese electric vehicles, China's position is consistent and clear. China firmly opposes the unfair, non-compliant, and unreasonable protectionist practices of the EU in this case and is resolutely against the EU's imposition of anti-subsidy duties on Chinese electric vehicles.

The spokesperson said that Chinese electric vehicles adhere to market leadership and are based on full competition. Through continuous self-innovation, they have increased the supply of high-quality green public products worldwide, making an important contribution to the global response to climate change. The EU's protectionist practices seriously violate World Trade Organization rules, disrupt the normal order of international trade, and not only hinder China-EU trade and investment cooperation but also delay the EU's own green transition process, affecting the global joint efforts to address climate change.

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The spokesperson expressed that China firmly opposes the EU's final draft, but also noted the EU's expressed political willingness to continue to solve problems through negotiations. The technical teams of China and the EU will continue negotiations on October 7th. China hopes that the EU will clearly recognize that imposing tariffs will not solve any problems but will only shake and hinder the confidence and determination of Chinese enterprises to invest and cooperate with Europe. China urges the EU to truly show practical actions to implement political willingness and return to the correct path of resolving trade frictions through consultations. China will also take all measures to firmly safeguard the interests of Chinese enterprises.

China has demonstrated an open and cooperative attitude throughout the consultation process.

The spokesperson introduced that China has implemented the consensus reached by the leaders of both sides, always starting from the overall situation of maintaining the China-EU comprehensive strategic partnership, and has always been sincere in handling differences through dialogue and consultation. Since the end of June, China and the EU have conducted more than ten technical consultations at the bureau level and two deputy ministerial consultations on the anti-subsidy case of electric vehicles.

On September 19th, Minister Wang Wentao and the Executive Vice-President of the European Commission and Trade Commissioner Dombrovskis held a comprehensive, in-depth, and constructive conversation. Both sides clearly expressed their political willingness to resolve differences through consultation and unanimously agreed to start price commitment consultations to avoid the escalation of trade frictions. In the following short 14 days, the technical teams of China and the EU have conducted six rounds of technical consultations. China has repeatedly and fully listened to the demands and opinions of the China-EU industry, demonstrating an open and cooperative attitude throughout the consultation process and showing the greatest flexibility.

On the 4th, the China Chamber of Commerce in the EU also issued a statement on the voting results of the final anti-subsidy measures against Chinese electric vehicles by EU member states. The statement said that the China Chamber of Commerce in the EU is deeply disappointed with this voting result and strongly dissatisfied with the EU's promotion of trade protectionist measures. At the same time, the Chamber of Commerce understands that the China-EU negotiation team is still in intense negotiations, looking for possible solutions. Therefore, we strongly call on the EU to act cautiously, postpone the implementation of tariffs, and commit to resolving frictions and differences through dialogue and consultation to avoid the escalation of bilateral trade frictions. Together, we should maintain the free trade and prosperity of the green and clean fields of China, the EU, and the world, and promote the efforts of both sides and the world to address climate change with practical actions.

The China Chamber of Commerce in the EU emphasized that the EU's anti-subsidy investigation against Chinese electric vehicles is an unjust protectionist practice driven by politics. The competitive advantage formed by the Chinese electric vehicle industry chain does not come from subsidies but from the overall supply chain advantages developed under fierce market competition. Imposing high anti-subsidy duties will not only affect Chinese enterprises but also disrupt the production of electric vehicles by European and global enterprises in China. Imposing high tariffs on electric vehicles originating from China will not enhance the resilience of local industries in Europe and other markets but will lose relevant Chinese investments in Europe, ultimately weakening the competitiveness of the European market itself and the vitality of the global electric vehicle industry chain.

The China Chamber of Commerce in the EU said it will closely monitor the ongoing relevant negotiations between China and the EU, looking forward to the EU starting from the perspective of maintaining multilateralism and promoting the realization of green goals, working with China, and reaching a constructive solution through dialogue and consultation as soon as possible.The key to consultation lies in whether the European side truly has the political will to solve the problem.

According to a message on the Ministry of Commerce website, on August 20th and September 9th, the European Commission twice published the final ruling disclosure of the EU's anti-subsidy case against electric vehicles, continuing the wrong approach and ruling high tax rates. China cannot recognize or accept this, but has always maintained the utmost sincerity, striving to properly resolve frictions through dialogue and consultation.

According to the Ministry of Commerce, on August 24th, the Chinese industry proposed a price undertaking solution within the time limit of the case investigation procedure, fully considering the demands of the European side and showing the greatest flexibility. The Chinese industry stated that its price undertaking proposal is fully compliant and executable, and all technical issues can be resolved through consultation. It is understood that several EU member states have also shown great interest in the price undertaking solution.

However, on September 12th local time, the spokesperson for the European Commission stated that the price undertaking solutions submitted by the China Machinery and Electronics Chamber of Commerce and all electric vehicle manufacturers regarding the EU's anti-subsidy case against electric vehicles did not meet the requirements, and the European side intends to reject the relevant price undertaking applications.

On September 13th, the spokesperson for the Ministry of Commerce responded to reporters' questions, stating that the European Commission's rejection of the relevant plan without a detailed assessment not only undermined the confidence of the Chinese industry to continue cooperation but also did not meet the expectations of EU member states, nor did it align with its public statement of hoping to resolve the case through dialogue.

The spokesperson said at the time that since the EU and China agreed to launch consultations on the EU's anti-subsidy case against electric vehicles on June 22nd, the working teams of both sides have conducted more than ten rounds of intensive consultations. China has submitted tens of thousands of pages of facts and evidence to the European side and has proposed flexible solutions, making great efforts. However, on the one hand, the European side claims to be willing to resolve through dialogue, but on the other hand, it quickly and hastily rejects China's suggestions and never provides any specific counterproposals, showing no sincerity in moving towards each other. If the consultations ultimately fail to reach a consensus, the responsibility lies entirely with the European side.

The spokesperson stated that the current key to the consultations is whether the European side truly has the political will to solve the problem. China urges the European side to earnestly implement the important consensus reached at the trilateral meeting between China, France, and the EU on properly handling economic and trade frictions through dialogue and consultation, to show sincerity and take action, and to seriously consider the reasonable concerns of the Chinese industry.

The spokesperson said that China has both the utmost sincerity in properly resolving differences through dialogue and consultation and the utmost determination to safeguard the legitimate rights and interests of Chinese enterprises. China will closely monitor the subsequent progress of the European side and will take all necessary measures to resolutely defend the legitimate rights and interests of Chinese enterprises.

A statement released by the China Machinery and Electronics Chamber of Commerce in September revealed that since the case was filed, the Chamber has led Chinese electric vehicle companies to actively cooperate with the European Commission's investigation, submitting industry defense opinions multiple times, attending hearings, and holding press conferences to deeply express China's position and concerns. At the same time, it has carried out face-to-face communication and dialogue with relevant automotive industry associations in Europe, Germany, France, Italy, and Spain. Several EU member states and related enterprises and organizations have also clearly expressed their desire to strengthen cooperation with China for mutual benefit and win-win results.

The China Machinery and Electronics Chamber of Commerce stated that despite China's efforts to cooperate with the investigation, pointing out many irregularities in the investigation, and expressing its willingness to cooperate multiple times, the European Commission still decided in the final ruling disclosure to impose high final anti-subsidy duties on Chinese imported electric vehicles. After the final ruling disclosure, the China Machinery and Electronics Chamber of Commerce, in accordance with the requirements of the case investigation procedure and within the specified time limit, coordinated 12 companies to submit a price undertaking proposal. This proposal fully considered the characteristics of the case and the European Commission's past commitment practices, focused on the demands of the European side, was fully compliant, and met the European side's requirements for being equally effective, executable, and supervisory as taxation, while also showing the greatest flexibility. However, the European side neither conducted in-depth communication with the Chinese side nor provided any specific counterproposals, but directly rejected China's suggestions. Currently, the China Machinery and Electronics Chamber of Commerce has provided comments on the European Commission's letter of refusal to commit and, while maintaining the utmost sincerity in resolving economic and trade frictions through dialogue and consultation, has coordinated enterprises to submit an improved price undertaking proposal to the European Commission, which further considers the issues of concern to the European Commission.The China Chamber of Commerce for Import and Export of Machinery and Electronic Products stated that the automotive industry chains between China and Europe are interdependent, with broad prospects for cooperation. The China Chamber strongly calls on the European Commission to maintain an open and cooperative attitude, to seriously consider the price undertaking proposal submitted by China, to move towards the Chinese side, to enhance the confidence of enterprises in investing in Europe and the commercial feasibility, to support comprehensive cooperation between the automotive industries of China and Europe, and to work together to promote the healthy development of the global electric vehicle industry chain and achieve the goal of carbon neutrality.

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