In a significant move to address rising trade tensions, China’s Commerce Minister Wang Wentao and Valdis Dombrovskis, Executive Vice President of the European Commission, agreed on Saturday to initiate consultations concerning the European Union’s anti-subsidy investigation into Chinese electric vehicles (EVs).
The consensus was reached during a video conference between the two officials, marking a step towards constructive dialogue amid growing concerns over the impact of the investigation on the global EV market.
On the same day, Minister Wang also held discussions with German Vice Chancellor Robert Habeck, reiterating China’s position on the matter. Wang emphasized China’s willingness to consider reasonable concerns from both sides to prevent an escalation of trade frictions. He expressed readiness for dialogue and consultations on EV subsidies, provided that the EU approaches the negotiating table with sincerity.
“China hopes that Germany can play a positive role within the EU, encouraging the European side to meet China halfway,” Wang stated, underscoring the deep economic interdependence between the two markets, especially as this year marks the 10th anniversary of the comprehensive strategic partnership between China and Germany.
Wang cautioned that if the EU persists in its current approach, China would take necessary measures, including possibly initiating a case under the World Trade Organization’s dispute settlement mechanism, to firmly defend its legitimate rights and interests.
German Vice Chancellor Habeck acknowledged the complexities of the situation, noting that both Germany and China are proponents and beneficiaries of globalization. He expressed deep concern over the EU’s anti-subsidy investigation, highlighting that it could negatively affect Europe’s green transition and consumer interests.
“Imposing tariffs is the worst approach as it could lead to a vicious spiral of escalating trade frictions,” Habeck warned, stressing that dialogue and consultations are the only viable means to resolve such issues.
The agreement to commence consultations reflects a mutual understanding of the importance of cooperation in the rapidly evolving EV sector. As the global community pushes towards sustainable energy solutions, collaboration between major players like China and the EU is crucial to facilitate innovation and market stability.
Analysts believe that constructive dialogue could pave the way for a more balanced and fair EV market globally, benefiting consumers and contributing to global efforts to combat climate change.
Reference(s):
China, EU agree to launch consultations on EV subsidy investigation
cgtn.com
