Nrws Desk

The rapidly increasing price of Chinese electric cars in the EU could be settling down after both sides of the region agreed to negotiate a series of import taxes to ease the situation. Recently, both sides talked on a call about the tariffs on Saturday, and came to an agreement to further discuss the topic, though with some grudges in between. This marks the first time both sides have come to an agreement to negotiate, ever since the EU had threatened China with electric vehicle (EV) tariffs reaching up to 38%.

Apparently, China had accused the EU of trade rule breaches and protectionism, after the latter had proclaimed that the Chinese government unfairly subsidizes its EVs.

A recent call between Trade Commissioner Valdis Dobrobskis and his Chinese counterpart Wang Wentao was “candid and constructive”, a spokesperson from the EU reported to BBC. They also say that both sides would “continue to engage at all levels in the coming weeks”. Even still, the spokesperson was strongly in support of the EU’s claim of the funding of Chinese EVs. They have also said that the “injurious subsidization” of Chinese EVs must be considered when taking into account, “any negotiated outcome” to the proposed tariffs.

China expressed that it is still in disagreement with the EU, and released an identical statement on Saturday. Along with its call with the EU, Mr Wang met up with German Vice-Chancellor and Federal Minister for Economic Affairs and Climate Action Robert Habeckon the same day.

In a recent Facebook post relating to the meeting, Mr Habeck was told by China’s MInistry of Commerce that it was at a “firm opposition” to the tariffs. It once again threatened to sue the World Trade Organization, saying that it is “to firmly defend its legitimate rights and interests”.