'Significant gaps' remain between China, EU over EV duties

BRUSSELS

The EU said Friday there were "significant remaining gaps" in negotiations seeking to avoid hefty tariffs on Chinese-made electric cars due to take effect next week but added that talks would continue.

Brussels plans to slap extra duties of up to 35.3 percent on top of the current 10 percent on imports of Chinese-made electric vehicles, which are due to come into effect for five years on Oct. 31.

EU trade chief Valdis Dombrovskis spoke Friday to Chinese commerce minister Wang Wentao in a video call during which they "took stock of the progress made during the eight technical negotiating rounds, as well as significant remaining gaps", said the bloc's trade spokesperson, Olof Gill.

They "agreed "further technical negotiations would take place shortly", Gill added.

China's commerce ministry warned EU negotiators this month against unilaterally setting prices with companies outside of its talks with Beijing.

But the European Commission, in charge of EU trade policy, insisted it had the right under World Trade Organization (WTO) rules to offer price undertakings — which set minimum import prices for exporters to offset subsidies — to different companies.

"Therefore (the) commission's negotiations with CCCME do not exclude discussions with individual exporters," Gill said, referring to the China Chamber of Commerce for Import and Export of Machinery and Electronic Products.

China wants the EU to reach a broad agreement with the CCCME, a Chinese umbrella group.

The European Union's duties have sparked fears of a trade war between Beijing and Brussels, and in what appeared to be a tit-for-tat move, China this month announced provisional tariffs on EU-made brandy.

Beijing has also launched a probe into EU subsidies of some dairy and pork products imported into China, which Brussels has described as "unsubstantiated".

Dombrovskis "raised concerns" to Wang about China's moves, Gill said in a statement.

Brussels has said it will challenge the brandy tariffs at the WTO and will explore what kind of support it can provide to European brandy makers.