The European Union is trying to appease the Chinese after raising tariffs on Chinese electric cars. Representatives from the highest political circles are sent to Beijing precisely for this purpose: to negotiate and find a solution to the situation that is not harsh retaliatory measures. Bloomberg reports this.
It has already been leaked to the media that the Chinese government has responded by advising its major auto companies to suspend investments in countries that voted to raise tariffs. EADaily Remember that Beijing couldn’t like 45% taxes on the export of Chinese cars.
“The European Union will send officials to Beijing to conduct new negotiations and find an alternative to tariffs on electric vehicles in China.” — anonymous sources told the publication.
Both parties must find out whether an agreement can be reached on so-called price commitments. This is a complex mechanism to control prices and export volumes, used to evade customs duties.
Europe will account for more than 40% of electric vehicles shipped from China in 2023, according to Reuters calculations based on data from the China Passenger Vehicle Association. But with the new tariffs, this market is no longer so attractive for the Middle Kingdom.
On the other hand, if the Chinese withdraw their investments from Europe, many countries will suffer. State-owned SAIC, China’s second-largest auto exporter, planned to open a spare parts center in France this year. The Italian government is already in talks with Chery about possible investments. Other European countries have similar plans, but now they all have big doubts.
