China And EU To Initiate Discussions On Subsidies For Electric Vehicles

China and the European Union have agreed on Saturday to commence consultations regarding the EU's anti-subsidy investigation into Chinese electric vehicles (EVs).

The two parties agreed to initiate consultations regarding the EU's anti-subsidy investigation into electric vehicles produced in China.

According to Reuters, in a statement, European Commission trade spokesperson Olof Gill said that Dombrovskis and the Chinese minister had a "candid and constructive call on Saturday regarding the EU's anti-subsidy investigation into battery electric vehicles produced in China."

"On June 22, Minister of Commerce Wang Wentao and Executive Vice President and Trade Commissioner of the European Commission Valdis Dombrovskis had video talks at the request of the latter," the Chinese ministry posted on X.

Zheng Shanjie, chairman of China's National Development and Reform Commission, stated, "We will do everything to protect Chinese companies." He emphasized that proposed EU duties on Chinese-made EVs would negatively impact both sides. Zheng conveyed his hope to Annalena Baerbock that Germany would show leadership within the EU and make decisions based on sound principles.

Furthermore, Zheng refuted allegations of unfair subsidies, asserting that China's advancements in the new energy sector were achieved through technological prowess, robust market dynamics, and well-developed industry supply chains, cultivated in competitive environments.

The EU and China have been escalating their trade war, with the EU imposing tariffs on Chinese electric vehicles earlier this month, and Beijing responding by launching an anti-dumping investigation into EU pork products.

Last week, the EU threatened Chinese electric vehicle (EV) manufacturers with tariffs of up to 38%, effective from July 4.

The EU's recent decision to impose tariffs on Chinese electric vehicles comes in the wake of a bold move by the United States, which escalated tariffs on Chinese electric cars from 25% to a significant 100% just last month.

Chinese officials have criticized these measures as protectionist and have responded with retaliatory actions of their own.

This week, China launched an investigation into the importation of European pork products, signaling a further intensification of trade tensions between the EU and China.