China-EU EV tariff talks in Brussels end with 'major differences': Beijing

BEIJING: The latest negotiations over European Union tariffs on Chinese electric vehicles ended in Brussels with “major differences” remaining, Beijing’s commerce ministry said Saturday.

Brussels has decided to impose swinging new tariffs of up to 35.3 percent on imports of Chinese-made electric cars.

Representatives from Beijing and the 27-member bloc have held eight rounds of talks over the issue in Brussels since September 20.

“There are still major differences between the two sides,” a ministry statement said, adding that it has invited EU negotiators for further discussions in China.

Negotiators “made important progress in some areas,” the statement said, but “have not reached a solution acceptable to both sides”.

“It is hoped that the EU can meet China halfway, arrange to come to China as soon as possible, and accelerate the consultations with a constructive attitude, so as to reach a proper solution as soon as possible,” the statement said.

The two sides are major economic partners, but have butted heads in recent months over Beijing’s generous subsidies for its domestic industries.

Brussels argues that the support undermines the principle of free competition and helped drive down the prices of Chinese exports, undercutting European competitors.

China has denied this and decried the EU tariffs, warning they will unleash a trade war.

Earlier this month it slapped provisional tariffs on EU-made brandy, alarming French producers.

Brussels is also investigating Chinese subsidies for solar panels and wind turbines.

China’s commerce ministry on Saturday warned EU negotiators against unilaterally setting prices with companies outside of its talks with Beijing.

“If the EU negotiates price commitments with some companies separately while negotiating with China, it will shake the foundation and mutual trust of the negotiations, interfere with the negotiations between the two sides, and be detrimental to the overall progress of the consultations,” the ministry said.

European Council president Charles Michel also met Chinese Premier Li Qiang on the margins of a Southeast Asian summit in Laos earlier this week.

Michel told AFP Friday that after his “frank and candid” talks with Li, he hoped a deal could be struck in the coming days or weeks — but he warned that getting there would be tough.

“I have the impression that the door is not closed, but it’s a very difficult situation, it’s very challenging,” he said.