Consensus welcomed as a positive gesture to avoid trade friction escalation; more observation needed
Chinese Minister of Commerce Wang Wentao and European Commission (EC) Executive Vice President and Trade Commissioner Valdis Dombrovskis held a comprehensive, in-depth, and constructive consultation in Brussels on Thursday (local time) regarding the EU’s ongoing anti-subsidy investigation into Chinese electric vehicles (EVs), according to a statement on the website of China’s Ministry of Commerce (MOFCOM).
During the meeting, both sides clearly expressed their political willingness to resolve differences through consultation and agreed to continue advancing negotiations on the price commitments, and spare no effort to reach a mutually acceptable solution through friendly dialogue and consultation, according to the statement.
Chinese business groups in the bloc and experts welcomed the outcome of the meeting, calling it an encouraging gesture that highlights the joint efforts and willingness of both sides to resolve the EV tariff case through consultation.
While the EC has shown its willingness to resolve the issue through consultation, further observation is needed to see whether the EC will meet China halfway in properly addressing the trade dispute, experts said. Increasing tariffs is not the solution, as noted by government officials, business communities and experts from both China and the EU.
At Thursday’s meeting, the Chinese side noted that the EC initiated the anti-subsidy investigation into EVs without applications from the industries within the EU, and the rulings were non-compliant, unreasonable, and unfair.
While China cannot accept this, it has always maintained the utmost sincerity in striving to resolve issues through dialogue and consultation, the MOFCOM said.
During the investigation, the Chinese industry proposed a price commitment solution and further refined it based on the concerns of the EU, demonstrating the utmost flexibility and sincerity, the ministry said.
At the meeting, the Chinese side urged the EU to earnestly implement the consensus reached by the leaders of China, France, and the EU on properly resolving economic and trade frictions through dialogue and to take positive actions to meet China halfway, according to the statement.
The ministry noted that if the EU insists on implementing unreasonable tariffs, China will firmly take necessary actions to protect the legitimate rights and interests of its enterprises.
The China Chamber of Commerce to the EU (CCCEU) welcomed the comprehensive and constructive consultations held on Thursday, it said in a statement sent to the Global Times on Friday.
Commenting on the consensus reached by both sides on advancing negotiations concerning price commitments, the CCCEU views this progress as a significant step toward addressing concerns widely shared by the business community and as a positive signal long anticipated by companies across the EV supply chain in both regions, the CCCEU said.
The CCCEU said that it looks forward to China and the EU continuing to heed the genuine concerns of companies in the EV supply chain.
More observation needed
Given the bleak outlook for trade talks after the EC insisted on imposing high anti-subsidy tariffs and hastily rejected the comprehensive solution proposed by the Chinese industry, the consensus reached at Thursday’s meeting serves as a positive message for both sides to avoid escalating trade frictions, Cui Hongjian, a professor at the Academy of Regional and Global Governance with Beijing Foreign Studies University, told the Global Times on Friday.
“China has shown great patience and sincerity in trying to resolve this issue together with the EC via talks, and it should be said that it has achieved certain positive results,” Cui said.
Moving forward, this matter requires close observation, as there are still internal divisions within the EU, Cui said, noting that both sides need to step up efforts to continue advancing their consultations and negotiations based on the current situation.
“The EC must refrain from adding political overtones to the EV tariff case… Additionally, the EC should carefully and earnestly listen to the voices of business communities from both sides, rather than drawing premature conclusions from a bureaucratic perspective and resolving the issue based on a predetermined stance,” Cui said, noting that an open and inclusive attitude is needed to address the concerns of both sides’ enterprises.
The outcome of the meeting is fairly positive, thanks to China’s unswerving efforts and determination to resolve the trade dispute through consultation despite challenges, Jian Junbo, deputy director of the Center for China-Europe Relations at Fudan University’s Institute of International Studies, told the Global Times.
“It also demonstrated the fact that both China and the EU are highly interdependent in a globalized world, and a ‘trade war’ does no good to anyone,” Jian said.
GT
