China wants the European Union to revoke its decision to impose provisional tariffs on Chinese electric vehicles after both sides agreed to hold new talks, Global Times reported on Sunday.
China’s commerce minister Wang Wentao and Valdis Dombrovskis, executive vice president of the European Commission, agreed to begin discussions on the EU’s anti-subsidy investigation into Chinese EVs, Beijing said in a statement on Saturday.
The ideal outcome China wants is for the European Commission to revoke its tariff decision by July 4 and adhere to World Trade Organization rules, Global Times reported, quoting observers.
The EU’s provisional duties of up to 38.1% on Chinese EV imports are set to kick in by July 4 if discussions with Chinese authorities do not result in a resolution, the commission said in a statement earlier this month.
This is in addition to standard 10% duty already imposed on imported EVs.
Scrapping the tariff decision on Chinese EVs would benefit both sides, the report quoted observers, adding that the economic and trade cooperation between China and the EU was “huge” and both sides were dependent on each other..
The EU’s moves will invite countermeasures from China, experts warned, adding that both sides stand to lose unless the situation is resolved.
China has firmly opposed the tariffs, saying the move was “blatant protectionism” and could violate WTO rules, its commerce ministry said on June 14. A Chinese official told CNBC last week that the EU’s probe into Chinese EVs was overly selective and that the results were not credible.
Read the full report on Global Times.