ALBAWABA - The European Union and China have decided to start discussions regarding the proposed tariffs which will be applied to electric cars (EVs) that are manufactured in China and imported into Europe, CNBC cites top executives from both parties.
The report emerged after the European Commission's executive vice president, Dombrovskis, and China's commerce ministry said that they had decided to begin discussions over the EU's anti-subsidy probe into Chinese electric vehicles (EVs) according to the head of the ministry.
According to a statement from the commerce ministry in Beijing, EU Trade Commissioner Valdis Dombrovskis and Chinese Commerce Minister Wang Wentao agreed to start negotiations during a video conference on Saturday, no further information was disclosed.
Earlier this month, the EU revealed intentions to levy up to 48% on Chinese EVs exported from July, escalating trade tensions, according to Bloomberg, with the group launching several probes against China, claiming unfair trade practices such large state subsidies, leading Beijing to escalate threats against European exports.
Speaking in Shanghai after discussions in Beijing, Germany's deputy chancellor and economic minister, Robert Habeck, supported the tariffs. He clarified that "these tariffs are not punitive," according to New York Times, adding that their goal is to counteract subsidies that are in violation of World Trade Organization regulations.
Habeck told reporters in Shanghai after the announcement of the EU-China negotiations how one needs to exercise extreme caution at this point as this is just the beginning and numerous more talks will be required, saying that “this is a first step that was not possible before. That’s why tonight is a good evening if we want to try to maintain a level playing field and avoid a tariff war.”
