EU braces for Chinese trade blows in aftermath of EV tariff vote

The two sides are still talking but remain far apart, with little hope of reaching a deal

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China and the European Union have yet to find a way of avoiding tariffs on Chinese electric vehicles before they come into effect at the end of this month. Photo: AFP

Published: 11:58am, 14 Oct 2024Updated: 2:04pm, 14 Oct 2024

European Union officials are bracing for an onslaught of retaliatory trade actions after a team of Chinese officials tasked with resolving an EV tariff row were hauled back to Beijing over the weekend.

The bloc’s punitive import tariffs of up to 35.3 per cent on Chinese electric vehicles are set to kick in by the end of the month, capping a year-long anti-subsidy investigation that China fought ferociously.

Talks aimed at reaching a deal have continued in the background, but negotiators remain miles apart, according to people familiar with the discussions.

On Saturday, China’s Ministry of Commerce said its officials had returned to Beijing, having failed to reach a deal. “So far, the consultations have not reached a solution acceptable to both sides,” the ministry said.

People involved in the talks said that, at times, it was as if the two sides were discussing separate issues. China wanted to negotiate an umbrella deal that would set a price for all exporters whereas the European Commission is adamant that individual companies must reach agreements on their own.

The ministry warned on Saturday that this would not work. “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,” it said.