China "backs down", signals readiness to ease tensions with EU

Beijing affirmed that it will continue to work closely with the EU to reach a solution that suits common interests.

China proposes talks with EU to resolve electric vehicle tax issue. (Source: Getty Images)

In a meeting with senior trade officials of the European Commission (EC) on September 9, Chinese Vice Minister of Commerce Li Fei said that the country is willing to engage in dialogue and consultation to resolve economic and trade disagreements with the European Union (EU).

China's Ministry of Commerce stressed that the issue of subsidies for Chinese electric vehicles is quite "complicated" and poses many great challenges to reaching an agreement.

According to the ministry, Beijing is willing to continue to work closely with the EU to reach a solution that is in line with common interests and complies with World Trade Organization (WTO) regulations, in order to promote the healthy and stable development of economic and trade relations between the two sides.

The talks come as the world's second-largest economy seeks to scrap proposed tariffs on its electric vehicles.

Last week, China signaled its willingness to ease tensions by not imposing provisional anti-dumping measures on EU brandy.

The 27-member bloc will cut tariffs on Tesla electric cars and ease tariffs on other electric vehicles from Beijing, after considering comments from businesses, according to people familiar with the matter.

Specifically, the tax rate on Tesla cars will be reduced from 9% to 7.8%. For BYD, the tax rate will remain at 17%. For Geely, the new tax rate is 18.8%, down from the previous 19.3%. The highest tax rate of 35.3% will be applied to SAIC and companies that do not cooperate with the EU investigation.

The final tax proposal will have to be voted on by the EU's 27 member states. The tax will be implemented unless at least 15 member states representing 65% of the bloc's population vote against it.

Earlier, on August 20, the EC announced plans to impose import duties of up to 36% for five years on Chinese electric vehicles unless the country can offer an alternative solution to a trade dispute over state subsidies.

Source: https://baoquocte.vn/trung-quoc-xuong-nuoc-danh-tieng-san-sang-giam-cang-thang-voi-eu-285826.html