Electric Cars: China & EU Now Talk to Each Other

In any case, the attempt at dialog starts from very distant positions

Dialogue opens up between China and the EU after the start of “the trade war.” The subject of negotiations is electric cars, on which the European Commission has decided to raise duties after a lengthy investigation. They could go as high as 38%. Beijing reacted harshly, threatening to impede other European exports.

The EU believes Chinese electric cars are unfairly subsidized by the government, and China has accused Europe of protectionism and violating trade rules.

But now Beijing and Brussels have decided to start a dialog. Chinese Commerce Minister Wang Wentao and European Commission Vice President Valdis Dombrovskis agreed in a telephone conversation to start talks to resolve the disputed issues.

The British Broadcasting Corporation BBC, reporting on the statement by the EU representative, explained that the phone conversation between Wang and Dombrovskis was “sincere and constructive,” and “they will continue to engage at all levels in the coming weeks.”

Following Wang’s meeting with German Vice Chancellor Robert Habeck, China’s Ministry of Commerce said, according to Italian news agency ANSA, that China is “ready for dialog and consultation on electric cars if the EU is willing to sincerely sit at the negotiating table and address the justified concerns of both sides to avoid escalating trade differences in a rational and professional manner.”

Meanwhile, the EU continues to oppose the way China’s electric car industry is financed, and China has threatened to “appeal under the WTO dispute settlement mechanism to firmly protect its legitimate rights and interests.”