Europe and China are close to an agreement on electric car import duties economy

The head of the European Parliament’s Trade Committee told a German TV channel that the European Union and China are close to reaching a solution regarding tariffs on Chinese electric car exports to the bloc.

Bern Lange told NTV, without going into details, “We are close to reaching an agreement. China may commit to selling electric cars in the European Union at a minimum price.”

He added, “This would eliminate the imbalance of competition through unfair subsidies, which is the reason that prompted these tariffs to be imposed in the first place.”

Reuters, which reported the news, said that it was not possible to contact the European Commission to obtain a comment yet.

Last month, the European Union decided to increase customs duties on electric cars manufactured in China, to up to 45.3%, as part of the most important trade investigations it is conducting, a step that caused division within Europe and sparked retaliatory reactions from Beijing.

The bloc imposed customs duties, which took effect on October 30, to confront what it says is unfair support that includes preferential financing and grants, in addition to land, batteries, and raw materials at prices below market prices.

Despite the entry into force of the tariffs, the two sides continued negotiations to find a solution, which raised hopes primarily among German automakers that a trade dispute could be avoided, given that they rely heavily on the Chinese market.

The Chinese Chamber of Commerce with the European Union said at the time that it was extremely disappointed by the “protectionist” and “arbitrary” measure taken by the European Union.

At the end of last month, China expressed its rejection of the European Union imposing additional customs duties on Chinese electric cars.

A spokesman for the Chinese Ministry of Commerce said at the time, “China does not agree with the European decision, and has filed a complaint under the dispute settlement mechanism in the World Trade Organization..”, adding that China will take all necessary measures to protect the legitimate rights and interests of Chinese companies.