China Urges France To Help Rework EU’s EV Tariffs

China has urged France to take on “an active role” to push the European Commission towards a solution acceptable to both the European and Chinese electric vehicle industries, Beijing’s commerce ministry said on Monday, citing its minister.

Wang Wentao, in a meeting with French junior trade minister Sophie Primas in Shanghai on Sunday, reiterated the European Union’s investigation into China’s EVs is a major concern and has “seriously hindered” China-EU auto industry cooperation.

Tariffs On Chinese EVs

The EU launched an anti-subsidy investigation into imports of Chinese-made battery EVs last year and in October voted for tariffs on those vehicles. China in the past year has launched its own investigations into European pork and dairy, and imposed temporary anti-dumping measures on imports of brandy from the EU early this month.

Primas is on a three-day visit to challenge China over its import duties on brandy, which Paris calls political and unjustified, Reuters reported last week.

Wang said Primas China’s trade remedy investigations on EU brandy, pork and dairy products were in accordance with the domestic industry’s applications and complied with the World Trade Organization rules, “unlike the EU” which was “rash” in launching its EV probe.

“China will continue to conduct investigations in strict accordance with the law, safeguard the legitimate rights of enterprises of EU member states, including France, and make rulings based on facts and evidence,” the ministry statement cited Wang as saying.

But he said China is willing to work with the European Commission towards a “proper solution” as well, without elaborating.

China’s Response

China opened an anti-subsidy probe into imported EU dairy products in August and an investigation focusing on pork intended for human consumption in June.

This year, the European Union decided to increase tariffs on Chinese-built electric vehicles to as much as 45.3% at the end of its highest profile investigation that has divided Europe and prompted retaliation from Beijing.

Following this, China told its automakers to halt big investment in European countries that support extra tariffs on Chinese-built electric vehicles, according to sources.

(with inputs from Reuters)