China and EU to Initiate Consultations on Anti-Subsidy Investigation into Chinese EVs
ICARO Media Group
The decision reflects China's commitment to resolving trade disputes through dialogue, while highlighting the EU's concerns about the potential repercussions for European companies and consumers if the European Commission (EC) proceeds with its politically-driven tariff scheme.
Observers have emphasized that China is seeking the EC to abandon its tariff decision before July 4 and adhere to the rules of the World Trade Organization (WTO). They have urged the EU to address disputes based on factual information, China-EU economic and trade cooperation, rather than being swayed by political influences, particularly those exerted by the United States.
Both China and the EU share a strong mutual dependence with significant economic complementarity, making the consequences of heightened trade tensions detrimental for both sides. Any further protectionist measures by the EU are likely to trigger retaliatory actions from China, resulting in a lose-lose situation for all parties involved.
China's Minister of Commerce, Wang Wentao, and Valdis Dombrovskis, Executive Vice President of the EC, reached a consensus on launching consultations during a video conference on Saturday. Wang expressed China's willingness to consider the reasonable concerns of both parties and find rational and professional solutions to prevent an escalation of trade disputes.
Zhang Jian, Vice President of the China Institutes of Contemporary International Relations, stated that China's sincere efforts to resolve disputes through consultations, combined with the strong opposition from some EU member countries regarding the EC's planned tariffs on Chinese EVs, compelled the EC to initiate consultations with China. Zhang expressed optimism that through discussions, the EC would retract its decision and comply with WTO rules.
During a meeting between Wang and German Vice Chancellor Robert Habeck, the German government expressed deep concerns about the potential negative impact of the EU's anti-subsidy investigation on Chinese EVs, highlighting its potential repercussions on Europe's green transition and consumer interests. Experts have warned that if the EC imposes tariffs on Chinese products without considering China's efforts for friendly consultations, it could significantly erode China-EU relations.
Sun Yanhong, a senior research fellow at the Institute of European Studies of the Chinese Academy of Social Sciences, emphasized that the upcoming consultations on the anti-subsidy investigation could face considerable challenges, as some European politicians have politicized and weaponized economic and trade matters. Sun called for the EU to address the dispute from an economic perspective rather than being influenced politically.
The Chinese Commerce Ministry (MOFCOM) squarely blamed the EU for continuously escalating trade frictions, warning that this could lead to a "trade war." MOFCOM cited that the EU had imposed 31 restrictive trade and investment measures against China since the beginning of the year, seriously undermining bilateral economic and trade cooperation.
Experts argue that the EC's anti-subsidy probe and its preliminary decision to impose provisional tariffs on Chinese EV imports reveal the EU's concerns about China's comparative advantage in the EV industry, as well as its own industrial weaknesses. Chinese EVs' global competitiveness is a result of breakthroughs in core technologies, efficient innovations, scale effects, and strategic choices by Chinese companies.
China and the EU are crucial trade and investment partners, with closely integrated industrial and supply chains. Experts emphasize the need for dialogue and negotiations to address any disputes in sectors such as EVs, rather than involving them in geopolitical conflicts or resorting to protectionist measures.
Technological advancements play a vital role in Europe's green and digital transition, and China has emerged as a leader in crucial technologies to achieve carbon neutrality. As Dick Roche, former Irish Minister for European Affairs, stated, recognizing this reality and engaging in discussions with China and other potential partners is essential to finding solutions for ideological, political, and administrative differences that hinder progress.
The consultations between China and the EU on the anti-subsidy investigation into Chinese EVs mark an important step towards resolving trade disputes and fostering stronger economic cooperation. Both parties are hopeful that through dialogue, a mutually beneficial solution can be reached, avoiding further escalation in trade tensions.
Note: The information provided has been condensed and paraphrased to generate this news article.