To The Moon

TMTPOST --  After five rounds of talks concerning China-made electric vehicles (EVs) in Beijing from November 2 to 7, Chinese and the European Union technical teams have reached “technical consensus” , especailly on price commitment framework and the implementation mechanism, Yuyuan Tantian, a social media influencer affiliated with state broadcaster China Central Television (CCTV), cited professionals it didn’t identify.

Credit：Xinhua News Agency

According to a post on Yuyuan Tantian WeChat account, the so-called "consensus on the price commitment framework" means that the two parties in the recent round of talks agreed on the overall framework, which also suggests both parties are willing to focus resources on negotiating core interests and work hard toward the same goal.

China and the EU have made certain progress in addressing the core issues about feasibility of regulatory enforcement, Yuyuan Tantian learned from Professionals. During the negotiation, the European side has always had an "unrealistic extreme perfectionism" and always been skeptical about the price commitment plan proposed by China, worrying that it would be difficult to implement and regulate, Yuyuan Tantian post clarified. It said professionals revealed that if China and the EU reach agreement on a price commitment plan, the China Chamber of Machinery and Electronic Products will play a key role in the implementation and supervision of the plan.

The post refuted recent claims from some Western news media outlets that China and the EU have made very limited progress in the negotiation of price commitment as an alternative to the EU tariffs on EVs, and both parties are very unlikely to reach an agreement. Some even said the Chinese side is blameable for it failed to come up a proposal that satisfies the EU. Such narratives was made intentionally to mislead public opinion and disrupt the negotiation process, Yuyuan Tantian said.

The European Commission disclosed October 4 its proposal to impose definitive countervailing duties on imports of battery electric vehicles (BEVs) from China has obtained the necessary support from EU Member States for the adoption of tariffs. The announcement cleared hurdles for the EU to introduce up to 45% definitive tariffs following an anti-subsidy investigation.These tariffs came into effect on October 30.

In the meantime, the EU and China continue to work hard to explore an alternative solution that would have to be fully WTO-compatible, adequate in addressing the injurious subsidization established by the Commission's investigation, monitorable and enforceable, said the European Commission.

China responded the EU’s latest tariffs with a compliant at the World Trade Organization (WTO). In order to safeguard the development of the EV industry and global green transformation cooperation,China has filed a complaint with the WTO over the EU’s final ruling on anti-subsidy measures on November 4, a spokesperson with China’s Ministry of Commerce (MOFCOM) told reporters that day.

The latest move suggested Beijing has moved forward its complaint as the spokesperson noted it had already appealed to WTO over the EU’s preliminary anti-subsidy measures with tariffs on EV imports from China. The spokesperson expressed China’s “strong opposition” to the bloc’s final ruling. It is regretable to see the EU decided to impose hefty duties on Chinese EVs despite numerous objections by relevant parties ranging from governments of EU member states, industries and the public, the spokesperson said.

The spokesperson alleged the EU’s final anti-subsidy ruling lacks factual and legal basis and violates WTO rules. China deems the ruling an an abuse of trade remedies as well as trade protectionism in the name of anti-subsidy, according to the spokesperson. China urges the the EU to reflect on its wrongdoings, immediately rectify its non-compliant practices, and jointly safeguard the stability of the global EV industry chain and supply chain, as well as overall China-EU economic and trade cooperation, said the spokesperson.  

Bloomberg reported last week the EU is facing significant challenges in its negotiations with China over a potential alternative to tariffs on EVs, with little prospect of a swift resolution. The report cited people familiar with the matter that the chances of a meaningful breakthrough remain slim despite a round of discussions in Beijing where both sides reportedly talked of some progress. The report said the EU's stringent demands for an enforceable arrangement, equivalent to the recently adopted anti-subsidy tariffs, have not yet been met by China.