BEIJING, Dec 11 (Reuters) – China’s commerce ministry on Thursday said negotiations with the European Union over a minimum price plan for China-made electric vehicles have restarted and would continue into next week, while urging the bloc not to talk independently with manufacturers.
The 27-member bloc approved duties of up to 45.3% in October 2024 after the European Commission began investigating whether China’s EV makers were benefiting from unfair subsidies that could lead to a supply glut in Europe.
China insists its manufacturers are simply more competitive than their European counterparts and Beijing has been urging Brussels to accept a minimum price plan in place of tariffs. Analysts say the EU is a vital market for Chinese automakers, who face shrinking margins at home due to price wars and deflation.
“China welcomes the EU’s renewed commitment to restarting price undertaking negotiations and appreciates its return to the path of resolving differences through dialogue,” said He Yadong, a commerce ministry spokesperson, at a regular news conference.
He said that had taken place in recent days and would continue into next week, without giving further details.
Previous EU minimum-price arrangements, or price undertakings, have applied to homogeneous commodities, not complex manufactured goods like automobiles.
The commission has said it believes a single minimum price would not be adequate to counter injury caused by subsidies.
(Reporting by Joe Cash; Editing by Muralikumar Anantharaman and Thomas Derpinghaus)
Comments