EU and China in intense negotiations: Tariffs on Chinese electric cars may soon be a thing of the past and replaced by fixed minimum prices for car manufacturers.
Negotiations between the EU and China have begun. They could potentially remove the current punitive tariffs on Chinese electric cars.
A new model with minimum prices for car manufacturers is on the table. It could change the terms for selling electric cars from China in Europe.
The EU has imposed additional duties on electric cars imported from China. Current rates vary considerably. Duties typically range between 17 and 45 percent.
However, some specific car manufacturers have obtained lower tariffs. This depends on the individual manufacturer's situation and willingness to cooperate during the EU's investigations.
This is what Handelsblatt writes.
An alternative solution is now being investigated. The idea of replacing the variable penalty duty with fixed minimum prices is gaining ground, according to the German media outlet Handelsblatt.
The EU's Trade Commissioner, Maros Sefcovic, is leading the talks from the European side. He is negotiating directly with China's Commerce Minister, Wang Wentao. The goal is to find a common solution.
From punitive tariffs to a minimum price for Chinese electric cars
China's Ministry of Commerce has confirmed the negotiations. The ministry announced that the talks will begin immediately. This signals a willingness to find a solution quickly.
The proposed model involves setting a minimum price. Chinese electric cars may not be sold below that price in the EU. This is intended to ensure fairer competition in the market.
The details of the minimum price setting are not yet known, but will be a key point in the upcoming negotiations between the parties.
The EU's punitive tariffs have been driven by concerns about state aid. The EU believes that Chinese producers receive unfair state aid, which gives them a competitive advantage.
An agreement on minimum prices could potentially address these concerns. It could be done without applying the disputed tariffs.
The future of Chinese electric car trade
The negotiations mark a new chapter in the trade relationship. Both the EU and China are showing an interest in avoiding an escalating trade conflict, especially in the growing electric car sector.
The outcome of the negotiations is still uncertain, however. It depends on the parties' ability to reach agreement on complex details, especially the level of any minimum prices.
A solution will have an impact on the car market in Europe. It could affect the prices of electric cars and the competition between European and Chinese brands. Consumers will follow the development closely.
Developments in electric cars and international trade are constantly changing. At Boosted.dk you can stay up to date with the latest news about electric cars.
We also cover developments for specific car brands, including the Chinese manufacturers that are gaining ground on the Danish market. Or who may not make it at all because they are being forcibly dissolved. Read more about it here .
