China and EU teams initiate contact for electric vehicle price commitment talks. - China state media

China and EU teams initiate contact for electric vehicle price commitment talks. - China state media

BERLIN/BEIJING - In a significant move to address trade tensions, the European Union (EU) and China have agreed to initiate talks on setting minimum prices for Chinese-made electric vehicles (EVs). The discussions come amidst ongoing trade disputes and increasing pressure from the United States' trade war.

The agreement follows a series of meetings between EU Trade Commissioner Maros Sefcovic and Chinese Commerce Minister Wang Wentao. In a joint statement, the two sides agreed to explore the possibility of setting minimum prices for Chinese EVs, which could potentially replace the existing tariffs imposed by the EU last October. The tariffs, which ranged from 17.0% to 45.3%, were imposed after an anti-subsidy investigation found that Chinese EV makers were benefiting from unfair subsidies.

The EU has expressed its willingness to continue negotiating an alternative to tariffs with China, with the goal of finding a mutually beneficial solution. However, the Commission has noted that a single minimum price may not be sufficient to counter the injury caused by subsidies. Previous minimum price deals have been for homogenous commodities, rather than complex products such as cars.

The talks are also part of broader efforts to strengthen economic and trade cooperation between the EU and China. In a video call, Wang and Sefcovic discussed enhancing trade cooperation and responding to the U.S. tariffs. The EU has also been in talks with ASEAN countries, with both sides vowing to jointly uphold the multilateral trading system with the WTO at its core.

The discussions come as the U.S. President Donald Trump has embarked on a trade war with some of its closest trading partners, including the EU and China. Trump's tariffs have led to retaliatory measures from both the EU and China, with the EU imposing tariffs of up to 25% on Chinese goods and China imposing an 84% tariff on U.S. goods.

The German auto industry association VDA has welcomed the talks between the EU and China, calling the duties a "mistake" and advocating for a negotiated solution. The association, which represents major German automakers, has expressed concerns about the potential impact of the tariffs on their sales in China.

The talks are expected to continue in the coming weeks, with both sides aiming to find a solution that addresses the concerns of both parties. The outcome of the discussions will have significant implications for the global EV market and the broader trade relations between the EU and China.

Key Points:
- EU and China agree to initiate talks on setting minimum prices for Chinese-made EVs.
- Discussions come amidst ongoing trade disputes and U.S. trade war.
- Talks aim to replace existing tariffs with a mutually beneficial solution.
- Broader efforts to strengthen economic and trade cooperation between the EU and China.
- EU and China have been in talks with ASEAN countries to jointly uphold the multilateral trading system.
- The outcome of the discussions will have significant implications for the global EV market and trade relations.

Conclusion:
The talks between the EU and China on setting minimum prices for Chinese-made EVs are a step towards addressing trade tensions and finding a mutually beneficial solution. The discussions come amidst ongoing trade disputes and increasing pressure from the U.S. trade war. The outcome of the talks will have significant implications for the global EV market and the broader trade relations between the EU and China.