• News
• 2024-08-15

EU Electric Vehicle Subsidy Case: China Invites EU Team for Face-to-Face Talks

According to a report on the Ministry of Commerce website on October 12, it has been said that China and the European Union have conducted consultations on the EU's anti-subsidy case against electric vehicles for more than 20 days, and today the Chinese team has returned home.

The spokesperson for the Ministry of Commerce answered questions from reporters, stating that on September 19, Minister of Commerce Wang Wentao held talks with the Executive Vice-President of the European Commission and Trade Commissioner Valdis Dombrovskis. Both sides agreed to continue promoting negotiations on the EU's anti-subsidy case against Chinese electric vehicles, with a commitment to price undertakings, and are committed to reaching a solution acceptable to both parties through friendly dialogue and consultations.

The spokesperson revealed that during the more than 20 days since September 20, Chinese and European technical teams conducted eight rounds of intensive consultations in Brussels. After arduous efforts, significant progress has been made in some areas. The Chinese side fully listened to the demands and opinions of the Chinese and European industries, and proposed practical and constructive solutions to the European side's specific concerns multiple times during the consultations, demonstrating the utmost sincerity and flexibility. However, it is regrettable that the European side has not actively responded to issues involving the core concerns of the Chinese and European industries, and there are still significant differences between the two sides. So far, the consultations have not reached a solution acceptable to both parties.

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The spokesperson emphasized that the Chinese side's attitude and sincerity in seeking solutions through dialogue and consultation have not changed. They have formally invited the European side to send a technical team to China as soon as possible to continue the next phase of face-to-face consultations and have made all preparations for this. It is hoped that the European side can work with the Chinese side, arrange to come to China as soon as possible, and accelerate the consultations with a constructive attitude to reach an appropriate solution as soon as possible.

The Chinese side will take all measures to firmly safeguard the interests of Chinese enterprises.

On the 4th of this month, representatives of EU member states voted to pass the final draft of the EU's anti-subsidy case against electric vehicles submitted by the European Commission, proposing to impose final anti-subsidy duties on electric vehicles originating from China.

In response to this, the spokesperson said that the Chinese side's position on the EU's anti-subsidy case against Chinese electric vehicles is consistent and clear. The Chinese side firmly opposes the unfair, non-compliant, and unreasonable protectionist practices of the European side in this case and firmly opposes the European side's imposition of anti-subsidy duties on Chinese electric vehicles.

The spokesperson stated that Chinese electric vehicles adhere to market leadership and are based on full competition. Through continuous independent innovation, they have increased the supply of high-quality green public products in the world and made an important contribution to the global response to climate change. The European side's protectionist practices seriously violate World Trade Organization rules, disrupt normal international trade order, and not only hinder China-EU trade and investment cooperation but also delay the EU's own green transformation process and affect the global joint efforts to address climate change.

The spokesperson also said that the Chinese side hopes that the European side will clearly recognize that imposing tariffs will not solve any problems, but will only shake and hinder the confidence and determination of Chinese enterprises to invest and cooperate with Europe. The Chinese side urges the European side to truly show practical actions to implement political will and return to the correct track of resolving trade frictions through consultations. The Chinese side will also take all measures to firmly safeguard the interests of Chinese enterprises.

Liang Ming, the director and researcher of the Institute of Foreign Trade of the Research Institute of the Ministry of Commerce, previously stated in an interview with First Financial Daily that in recent years, the world economy has been sluggish, and the great changes that have not been seen in a hundred years have accelerated. Global trade protectionism continues to spread, leading to trade disputes that rise and fall, showing characteristics of large numbers, high intensity, and long-term nature. China has always been the primary target country for trade relief investigations. As the world's largest trading country, it has continuously encountered trade frictions from other economic entities, which has become a "new normal" in the process of China's economic development.Liang Ming stated that, based on past cases, the final resolution methods for cases where agreements are reached through negotiations are diverse and vary according to the characteristics of each case, with no uniform pattern to follow. The current China-EU trade remedy consultation negotiations are not a simple negotiation; the process will inevitably be arduous and long-term. China does not preset the outcome of the negotiations and will not make compromises it should not make. On major issues involving national and corporate interests, China will not concede.

Professor Cui Fan from the School of International Trade and Economics at the University of International Business and Economics told First Financial Daily that China is the world's largest exporter of goods trade and also the largest manufacturing powerhouse. Consequently, the frequency of trade remedy investigations we face is relatively high. However, these frictions have not fundamentally hindered the development of China's foreign trade. In recent years, the overall share of China's foreign trade in the global scale has been increasing. For China, it is essential to further implement a strategy of becoming a trade powerhouse, adhere to winning with quality, and deepen domestic reforms to optimize the competitive order. We should climb to the high and middle end of the global value chain to reverse the situation of increasing volume without increasing profits. We must rely on the domestic market, adhere to the concept of innovation development, accelerate the construction of a new development pattern, and form new advantages in international competition.

If the European side negotiates separately with some enterprises, it will cause interference. According to relevant reports, the European Commission is conducting price commitment negotiations with some enterprises separately on the EU's anti-subsidy case for electric vehicles.

In response, the spokesperson said that the Ministry of Commerce has noticed the relevant reports. It needs to be emphasized that China has always been conducting dialogue and consultation with the European side with the utmost sincerity and goodwill. We believe that different types of Chinese enterprises, including European-funded enterprises in China, have authorized the China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCME) to propose a price commitment plan that represents the overall position of the industry. This is the basis for the current China-EU consultation. If the European side negotiates separately with some enterprises while negotiating with the Chinese side, it will shake the foundation and mutual trust of the negotiations, interfere with the consultation between the two sides, and is not conducive to promoting the overall progress of the consultation. China hopes that the European side will fully demonstrate sincerity, take the core concerns of the industry seriously, and reach a solution acceptable to all parties as soon as possible on the basis of the current consultation.

According to a statement released by the CCCME last month, since the case was filed, the CCCME has led Chinese electric vehicle enterprises to actively cooperate with the European Commission's investigation, submitting industry defense opinions, participating in hearings, and holding press conferences many times to deeply express the Chinese side's position and concerns. At the same time, it has carried out face-to-face communication and dialogue with relevant automotive industry associations in Europe, Germany, France, Italy, and Spain. Many EU member states and related enterprises and organizations have also explicitly expressed their hope to strengthen cooperation with the Chinese side for mutual benefit and win-win results.

The chamber stated that after the final ruling was disclosed, the CCCME coordinated 12 enterprises to submit a price commitment plan in accordance with the requirements of the case investigation procedures and within the specified time limit. The plan fully considered the characteristics of this case and the European Commission's previous commitment practices, paid attention to the European side's demands, was fully compliant, and met the European side's requirements for being equally effective, executable, and supervisory as taxation. At the same time, it showed the maximum flexibility.

According to the Ministry of Commerce, on September 12th local time, the European Commission's spokesperson stated that the price commitment solutions submitted by the CCCME and all electric vehicle manufacturers regarding the EU's anti-subsidy case for electric vehicles did not meet the requirements, and the European side intends to reject the relevant price commitment applications.

The chamber stated that the European side neither conducted in-depth communication with the Chinese side nor provided any specific counter-proposals, but directly rejected the Chinese side's suggestions. Currently, the CCCME has put forward comments on the European Commission's rejection letter and, while adhering to the utmost sincerity of dialogue and consultation to resolve trade frictions, coordinated enterprises to submit an improved price commitment plan to the European Commission. This plan further considered the issues of concern to the European Commission.

The chamber stated that the automotive industry chains of China and the EU are interdependent, and the prospects for cooperation are broad. The CCCME strongly calls on the European Commission to maintain an open and cooperative attitude, seriously consider the price commitment plan submitted by the Chinese side, work with the Chinese side, enhance the confidence and commercial feasibility of enterprises' investments in Europe, support comprehensive cooperation between the automotive industries of China and the EU, and make joint efforts to promote the healthy development of the global electric vehicle industry chain and achieve the goal of carbon neutrality.