.@LouiseVanSchaik talks to @ENDSEurope about tariffs on Chinese electric vehicles, the risk of retaliation from Beijing and what the EU can do to protect itself.
📰Read the articlehttps://t.co/IrchNS4Kkx
— Clingendael Institute (@Clingendaelorg) October 14, 2024
The European Union is preparing for potential economic repercussions from China following the EU’s decision to impose tariffs of up to 35.3% on Chinese electric vehicles. The aftermath of this vote has left the two sides continuing to engage in discussions, though they remain significantly far apart, with little hope of reaching an agreement. Talks aimed at closing the gap have persisted, but insiders indicate that negotiators are still miles apart.
Over the weekend, officials from China’s Ministry of Commerce returned to Beijing without achieving a deal. “So far, the consultations have not reached a solution acceptable to both sides,” the ministry reported. The negotiation process has been particularly challenging.
📢 "The tariffs are not a permanent solution; if European companies fail to close the gap with Chinese auto makers, then in 5 years we could be back to square one."
🚗🔋 NEW: @dgbailey unpacks the EU’s tariffs on Chinese battery electric vehicles.https://t.co/IYD9qfnYP9
— UK in a Changing Europe (@UKandEU) October 12, 2024
Berlin is now the main roadblock to the adoption of bolder EU policies vis à vis China, writes @AgatheDemarais. @ECFRGeoecon @ECFRPowerhttps://t.co/vvOqwRkpim
— ECFR (@ecfr) October 14, 2024
Tariffs heighten EU-China trade tensions
People involved in the talks noted that, at times, it seemed as though the two sides were addressing entirely different issues. China has been pushing for an overarching deal that would set a unified price for all exporters.
Meanwhile, the European Commission insists that individual companies must negotiate their own agreements.
The EU vote in favour of tariffs on Chinese electric vehicles has exposed divisions across EU member states on how to approach the challenges that China’s economic rise pose. @ECFRPowerhttps://t.co/vvOqwRkpim
— ECFR (@ecfr) October 11, 2024
China’s Ministry of Commerce has warned that negotiating price commitments separately with individual companies while still in talks with China as a whole could undermine the trust essential to these negotiations. “If the EU conducts price commitment negotiations with some companies separately while negotiating with China, it will shake the basis and mutual trust of the negotiations,” the ministry stated.
As discussions continue, the gap between the European Union and China remains wide, leaving the future of their trade relations uncertain.
