Europe Enters Trade Negotiations Over Chinese BEV Tariffs

China and the European Union agree to hold negotiations to head off a trade war threatened by the imposition of proposed tariffs on Chinese battery-electric vehicles.

Leading officials from both trading blocs will enter into crisis talks in a bid to calm nerves, not least from German automakers who are deeply involved with the Chinese market and manufacturing processes, reports BBC News.

A call between the officials over the weekend follows the conclusion of a European Commission investigation that recommends slapping tariffs of up to 38.1%, on top of the existing 10% tariffs, on Chinese made BEVs owing to unfair government subsidies received by Chinese automakers. It also follows the U.S. blanket 100% tariff on Chinese BEVs imposed earlier this month.

An EU spokesperson tells the BBC the call between Trade Commissioner Valdis Dombrovskis and his Chinese counterpart Wang Wentao was “candid and constructive,” adding that the two sides would “continue to engage at all levels in the coming weeks.”

As well as its call with the EU, Wang met German Vice Chancellor and Federal Minister for Economic Affairs and Climate Action, Robert Habeck, over the weekend illustrating the country’s concern for its automakers trading in China.