EU to meet to discuss decisive blow to Chinese electric vehicles, Beijing willing to negotiate to resolve disagreement

The European Union (EU) is expected to vote on import tariffs on Chinese electric vehicles next week.

The EU will vote on tariffs on Chinese electric car imports next week. (Source: Getty Images)

The 27 member states are expected to vote on tariffs on Chinese electric vehicles announced by the European Commission (EC) in June 2024 to create a level playing field for European carmakers.

The EU is expected to make a final decision on its biggest trade measure against China in more than a decade by the end of October, analysts say.

However, carmakers and the 27-nation EU have yet to agree on whether to impose tariffs of up to 36.3% on electric vehicles from the world's second-largest economy.

According to the German Automobile Trade Association, the imposition of tariffs would damage the country's automakers - companies with a significant presence in the billion-people market.

Meanwhile, Italian and French car companies have virtually no presence in this Asian country.

Beijing's electric vehicle makers benefit from government subsidies that allow them to export cheaply in an effort to increase global market share.

"Chinese automakers can produce a car for around $5,500, while European automakers' costs are closer to $20,000," said analyst Felipe Munoz of data firm JATO Dynamics.

Mr. Munoz said this cost advantage is partly due to government subsidies.

In addition, large economies of scale, with lower labor costs, also contribute to lower production costs. Moreover, for electric vehicles, China has secured a battery supply chain that the rest of the world has not.

The world's second-largest economy has re-launched talks with the EC to resolve economic and trade disputes, aiming to reduce upcoming EU tariffs on electric cars made in China.

China's Ministry of Commerce said it is willing to continue working closely with the EU to reach a solution that is in line with common interests and complies with World Trade Organization (WTO) rules.

Source: https://baoquocte.vn/eu-sap-hop-ban-ve-don-quyet-dinh-voi-xe-dien-trung-quoc-bac-kinh-thien-chi-dam-phan-giai-quyet-bat-dong-287867.html