【Lithium Battery】Breaking: EU May Cancel Tariffs on Chinese Electric Vehicles

On November 23, several media outlets reported that the European Union may cancel tariffs on Chinese electric vehicles.

Bernd Lange, Chairman of the European Parliament's Trade Committee, revealed in an interview that the EU and China are close to reaching a resolution on the removal of import tariffs on Chinese electric vehicles. However, he emphasized that these tariffs are considered "anti-subsidy duties" rather than punitive tariffs, aimed at eliminating "unfair competition."

Since the trade dispute between China and the EU over electric vehicle tariffs, the EU has continued to pursue protectionist measures despite strong opposition from China. At the same time, the EU has repeatedly expressed willingness to negotiate with China to potentially avoid the imposition of these tariffs.

Since early November, technical teams from China and the EU have held multiple rounds of consultations in Beijing, making progress on specific details regarding the EU's anti-subsidy investigation into Chinese electric vehicles. China has repeatedly stated that the EU's anti-subsidy measures are protectionist actions disguised under the guise of "fair trade," which could severely disrupt and distort the global automotive supply chain, including in the EU, and negatively impact China-EU economic and trade relations.

As a member of the German Social Democratic Party, Lange referred to the stance of German Chancellor Olaf Scholz, also a Social Democrat, highlighting the deep involvement of German automakers in the Chinese market. He pointed out that increasing tariffs on Chinese electric vehicles could prompt China to take retaliatory measures, potentially damaging the position of these car manufacturers in the Chinese market.

Lange stated, "We are still negotiating with China on the electric vehicle issue. We are about to reach a solution to remove tariffs, which will allow China to sell electric vehicles in the EU at the lowest possible prices."However, he did not provide specific details, only stating that this move would address the issue of "competitive distortions caused by unfair subsidies," which was the original reason for introducing the tariffs.

Lange insisted that the EU’s tariffs on Chinese electric vehicles are not punitive but are "anti-subsidy duties." He argued that while the U.S. imposes a 100% tariff on Chinese electric vehicles, excluding them from the market, the EU does not take such extreme measures. "We just want fair competition, and EU legislation allows us to impose anti-subsidy duties when dumping or illegal subsidies are present."

Lange also mentioned that, with the potential return of Trump to the White House, the EU must adjust its competition policy. He criticized the EU Commission President Ursula von der Leyen's idea of "de-risking" as overly simplistic if it is only aimed at China.

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