Thu Sep 19 04:01:39 UTC 2024: ## EU-China Trade Talks Heat Up as EV Tariff Vote Looms

**Brussels, Belgium -** The EU’s decision on imposing tariffs on Chinese electric vehicles (EVs) is hanging in the balance as Chinese Commerce Minister Wang Wentao meets with EU Trade Commissioner Valdis Dombrovskis on Thursday. This crucial meeting comes ahead of a pivotal vote by EU member states next Wednesday on whether to implement the proposed 35.3% duties on Chinese EVs.

Wang’s visit, following similar trips to Germany and Italy, is a last-ditch effort to convince European capitals to block the tariffs. He has warned that China-EU trade relations are at a “crossroads,” with the choice between “openness and collaboration” or “protectionism and isolation.”

The European Commission insists the tariffs are needed to protect European automakers from unfairly subsidized Chinese competition. However, 15 of the EU’s 27 member states, representing at least 65% of the bloc’s population, must vote against the tariffs to prevent their implementation.

While Germany and Spain have expressed support for a negotiated solution, the outcome of the vote remains uncertain. Some analysts believe China may be building support to block the tariffs, while others argue that the Commission is unlikely to back down.

Concerns over potential Chinese retaliation, including tariffs on European pork and combustion engine vehicles, are also influencing the debate. Notably, Spain and Germany are major exporters of these products.

The Commission rejected price undertakings from affected Chinese automakers, which aimed to avoid tariffs by setting price floors on their EVs. While some EU member states support a negotiated settlement, they have not actively pressured the Commission to change its position.

Analysts warn that even if the tariffs are imposed, they may not render Chinese EVs uncompetitive. They also point to the broader political context, including growing tensions over China’s ties with Russia and the status of Taiwan.

Europe’s focus should shift from fear of Chinese retaliation to ensuring that any Chinese investments in European EV manufacturing bring real value, experts advise. This includes engaging with local suppliers and ensuring that critical knowledge and value remain in Europe.

The upcoming vote represents a critical juncture in EU-China relations, with the potential for both economic and political repercussions.

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