Brussels and Beijing are exploring new ways to address the ongoing dispute over battery electric vehicles (BEVs) in order to avoid additional tariffs on China-made BEVs. Despite a recent meeting failing to deliver a breakthrough, both parties have committed to intensifying negotiations. Brussels has accused Beijing of providing subsidies to lower the price of Chinese-made BEVs and push out European competitors. In response, the European Commission proposed additional import tariffs on BEVs made in China. These proposed duties will range from 7.8% to 35.3% and will be on top of the existing 10% rate. Member states will vote on the tariffs before November.
In an effort to reach a negotiated solution, Chinese officials have been meeting with EU representatives to find a resolution and protect domestic companies from tariffs. While Beijing has publicly criticized the EU inquiry, behind the scenes, they are seeking a friendly dialogue to resolve the issue. Both parties have agreed to reconsider the option of price undertakings to control exports and avoid anti-subsidy tariffs.
Meanwhile, Chinese lobbying efforts are underway to convince member states, including Hungary and Germany, to vote against the tariffs. Spain’s Prime Minister Pedro Sánchez recently called on the Commission to reconsider the proposal, signaling a potential shift in support. Germany, influenced by its automotive industry, is also leaning towards voting down the tariffs.
The outcome of the negotiations and the vote by member states will determine the future of the tariffs on China-made BEVs. Both sides are committed to finding a solution through dialogue and negotiation to avoid a trade war.
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