EU fails to address key concerns of Chinese and EU industries

By AJP Posted : October 18, 2024, 09:37 Updated : October 18, 2024, 09:45
Visitors explore the Guangzhou Automobile Group pavilion at the 2024 Paris Motor Show during the media day in Paris France on Oct 14 2024 Xinhua-Yonhap
Visitors explore the Guangzhou Automobile Group pavilion at the 2024 Paris Motor Show during the media day in Paris, France on Oct. 14, 2024. Xinhua-Yonhap
SEOUL, October 18 (AJP) - China's Ministry of Commerce (MOFCOM) announced on Thursday that major differences persist between China and the EU regarding their electric vehicle (EV) trade dispute, as the EU has not yet responded to the primary concerns of industries in both regions. However, China has extended an invitation for another round of in-person talks, according to the ministry.

Frustration is mounting with the European Commission (EC), the EU's executive body leading the dispute. On Wednesday, German Chancellor Olaf Scholz criticized the EC's actions and called for a resolution with China, noting that other EU member states are also questioning the tariffs imposed by the EC.

While EU leaders have publicly supported negotiations, sources told the Global Times that the EU has not demonstrated enough commitment in actual discussions. Amid growing internal and external criticism, experts are urging the EU to approach negotiations with more sincerity to reach a mutually beneficial agreement with China.

In response to a question on the progress of China-EU EV negotiations during a press conference on Thursday, He Yadong, a spokesperson for MOFCOM, stated that China has shown significant flexibility and sincerity, and some progress has been made in specific areas. However, "the EU has yet to address key issues concerning the industries of both China and the EU," He said.

Reaffirming China's dedication to resolving the dispute through dialogue, He added that China has officially invited the EU's technical team for further face-to-face negotiations. "We have prepared everything and are waiting for the EU's reply," He noted.

When asked whether China is considering raising tariffs on imported vehicles with large-displacement engines, he explained that the country is evaluating potential measures, including higher tariffs on such vehicles, and will make a decision based on a thorough assessment of all factors.

The EC's plan to impose extra tariffs on Chinese EVs has sparked concern among industries in both China and the EU, as the move could harm not just the EV trade but also broader cooperation between China and the EU. This concern is especially strong in countries like Germany, which has a large automotive sector deeply connected to the Chinese market.

These worries were reflected on Wednesday when Scholz, speaking to the German parliament, criticized the EU's decision to impose tariffs on Chinese-made electric cars. According to Reuters, Scholz noted that 17 other EU member states, along with top automotive industry executives, also have doubts about the EC's actions. "My request is that we reach an agreement between China and the European Union," Scholz said.

Zhao Junjie, a researcher at the Chinese Academy of Social Sciences' Institute of European Studies, said Scholz's remarks highlight growing concerns among some EU member states and industries over the EC's protectionist policies. "There are divisions within the EU," Zhao said, adding that while some countries, such as Germany, seek to maintain stable China-EU relations, others favor protectionist measures.
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