China calls for advancing consultation on EU's anti-subsidy probe into Chinese EVs

BEIJING, July 4 (Xinhua) -- China hopes that the EU will work with it in the same direction and show sincerity in advancing the consultation concerning the EU's anti-subsidy probe into Chinese electric vehicles (EVs), the Ministry of Commerce (MOC) said Thursday.

The consultation should be based on facts and rules and should result in a solution that is acceptable for both sides as soon as possible, MOC spokesperson He Yadong said at a press briefing.

"So far, China and the EU have held multiple rounds of consultation at the technical level. There is still a four-month window before a final decision is made," He said.

China has repeatedly expressed strong opposition to the EU's anti-subsidy investigation into Chinese EVs. China believes that economic and trade frictions must be properly handled through dialogue and consultation, He said.

The ministry's update on this matter came after the two sides agreed to start consultation following talks between Chinese Minister of Commerce Wang Wentao and European Commission Executive Vice President and Trade Commissioner Valdis Dombrovskis via a video link on June 22.

Last month, the European Commission unveiled plans to impose provisional tariffs on imports of Chinese EVs. The move, widely criticized as protectionist, unveiled additional duty rates ranging from 17.4 percent to 38.1 percent for Chinese EV makers despite widespread market concerns and China's objections.

China has noticed that governments of some EU member states and major automobile companies have repeatedly voiced opposition to the EU's anti-subsidy measures against Chinese EVs, the MOC spokesperson said.

"China hopes that the EU will listen to the voices within the bloc, carry out negotiations with China rationally and pragmatically, and avoid countervailing measures that harm the mutually beneficial cooperation and shared growth of Chinese and European auto industries," He said.

On Wednesday, the German Association of the Automotive Industry said the planned tariffs against China-made EVs would be counterproductive for Europe's climate goals and harmful to its industry and consumers.

The association has warned that Western car manufacturers in China would also be affected by the tariffs initiated by the EU, in some cases even worse than Chinese companies.