China wants EU to scrap tariffs on EVs on July 4, Chinese state media reported via Reuters

Beijing – Beijing wants the European Union to lift its first tariffs on Chinese electric vehicles on July 4, the Chinese state-run Global Times reported, after the two sides agreed to hold new trade talks.

Temporary EU duties of up to 38.1% on imported Chinese-made EVs are expected to take effect on July 4 while the bloc investigates what the EU says are excessive and unfair subsidies to Chinese EV makers.

China has repeatedly asked the EU to cancel its tariffs, expressing a willingness to negotiate. Beijing does not want to get into another tariff war, fueled by US tariffs on its goods imposed by the Trump administration, but says it will take all measures to protect Chinese firms if it happens.

Both sides agreed to start tariff talks after a phone call between EU Commissioner Valdis Dombrovskis and Chinese Commerce Minister Wang Wentao on Saturday during a visit to China by the German economy minister, who said the doors to negotiations were “open”.

The best outcome of the talks is that the EU has scrapped its tariff decision before July 4, the Global Times reported late Sunday, citing observers.

The increasing EU protectionist measures will cause measures from China, and the increase in trade disputes will lead to “losses” of results for both sides, the newspaper said.

Taxes are expected to be finalized on Nov. 2 at the end of the EU anti-subsidy investigation.

China has dismissed allegations of unfair subsidies, saying the development of China’s EV industry was the result of advantages in technology, the market and industrial supply chains.