EU Says Deadline for China to Negotiate Electric Vehicle Prices Has Passed

A motorist rides past new electric vehicles parked in a lot under a viaduct in Wuhan, Hubei Province, China, on May 22, 2017. STR/AFP via Getty Images

The European Commission said on Sept. 15 that the deadline for Chinese manufacturers to set a minimum price for Chinese electric vehicles (EV) as an alternative to tariffs has passed, ending a key phase in negotiations as the European Union prepares to vote on Chinese EV tariffs next month.

The Chinese communist regime’s commerce minister, Wang Wentao, is visiting Europe to negotiate with the European Commission ahead of a vote that could impose tariffs as high as 36.3 percent on Chinese EVs. He also plans to meet with EU trade chief Valdis Dombrovskis.

“The deadline for submitting such offers was the 24th of August, and there is no possibility beyond that deadline to offer new price undertakings under the rules of this type of investigation,” a European Commission spokesperson said on Sept. 16.

“The Chinese automakers in question have had many weeks before the deadline to make this type of price undertaking. Had they done so at an earlier stage that would have allowed for meaningful engagement on the topic.”

Last week, a spokesperson said the commission had already reviewed and rejected minimum price offers from Chinese manufacturers.

The European Commission is set to vote on the tariffs in October. The current proposal sets tariffs of 9 percent for Tesla, 17 percent for BYD, 19.3 percent for Geely, and 36.3 percent for the state-owned SAIC Group, on top of the standard 10 percent duty that the bloc applies to all imported cars.

The European Commission released the tariff rates after conducting an investigation into the Chinese EV industry and concluding that the Chinese regime had subsidized the industry to the point of overcapacity. This results in artificially low prices, which the commission found could unbalance the European market.

If the majority of the bloc’s 27 member states vote to pass the measure, the tariffs will go into effect by the end of October. The trade duties typically remain in effect for five years once passed.

Italian Foreign Minister Antonio Tajani met with Wang in Rome on Sept. 16. In an interview published on the same day, Tajani told local media Corriere della Sera that he supports the tariffs.

Italy is one of the EU’s major carmakers and has also been courting Chinese carmakers Dongfeng Motor Corp. and Chery Automobile Co. to open factories in Italy.

According to a statement, Tajani and Wang discussed trade and foreign conflicts.

“China is our primary trading partner in Asia and the second among non-EU countries, after the USA. I reiterated the need for fair access to the Chinese market and a level playing field for our companies, especially SMEs and businesses in the agri-food sector,” Tajani said in the statement.

“It is crucial for China to collaborate on the security of the Red Sea, a key region for the freedom of navigation and the safety of exports,” he said.

The statement also mentioned the war in Ukraine.

“I raised the issue of military supplies to Russia,” Tajani said. “China’s cooperation is essential, particularly in view of the upcoming peace conference.”

Reuters contributed to this report.