The European Commissioner for Trade, Valdis Dombrovskis, and the Chinese Trade Minister Wang Wentao have agreed to hold meetings to negotiate the tariff increases announced by the European Union and China. In June the European Commission announced its intention to introduce new duties on the import of electric cars from China, which could total up to 48.1 percent of the value of the good. China responded with an investigation into alleged unfair trade practices in pork imports from the European Union.
China has said it wants to avoid increasing tariffs on its products, and is open to negotiating with the European Union. According to an investigation by the European Commission, whose final results will arrive in November, the Chinese government provides illicit financing to the electric car industry, giving Chinese companies an unfair advantage over European ones.
China is the country most involved in the development of electric vehicles: it is at the center of the growth and innovation of the sector and has a clear advantage in the mass production of this type of vehicle. This dominant position is seen both in the high number of factories, companies and startups present in its territory, and in the extensive training of engineers and technicians for the sector, and in the extraction of the so-called rare earths, necessary for the production of engines electric, and in the production of batteries, on which practically the entire sector depends on a global level.
Within the European Union there are different positions regarding tariffs: countries like Spain and France have companies that are very exposed to competition, and therefore would have preferred even harsher measures to hinder Chinese companies in the European market. On the contrary, Germany, whose automotive industry has deep connections with China’s, would have much to lose from a possible retaliation by the Chinese government, which could decide to respond to the tariffs with other measures. German Economics Minister Robert Habeck met Wentao during a visit to China on Saturday.
