China calls on France to nudge EU on tariff truce

China has urged France to push the European Commission towards a solution acceptable to both the European and Chinese electric vehicle industries, while France said the bloc would not yield on key matters as it pushes to overturn a tariff on brandy.

The EU launched an anti-subsidy investigation into imports of Chinese-made battery EVs last year and in October voted for tariffs on those vehicles. China in recent months has launched its own investigations into European pork and dairy, and imposed temporary anti-dumping measures on imports of brandy from the EU in October.

Chinese commerce minister Wang Wentao, in a meeting with French junior trade minister Sophie Primas in Shanghai on Sunday, urged Paris to take on “an active role” to nudge the EU on Chinese EVs.

He reiterated the bloc’s investigation was a major concern that has “seriously hindered” China-EU vehicle industry co-operation.

Primas told Wang that the EU refuses to escalate the situation and continues to trade with China “but will not yield to pressure on the essential points”.

“We will continue to defend fairer competition that benefits everyone,” a statement from her press office showed, adding that Wang was open in their discussions to consider the propositions of French brandy producers.

Primas is on a three-day visit to challenge China over its import duties on brandy, which Paris calls political and unjustified, Reuters reported last week.

Wang told Primas Beijing’s trade remedy investigations on EU brandy, pork and dairy products were in accordance with the domestic industry’s applications and complied with the World Trade Organisation rules, “unlike the EU” which was “rash” in launching its EV probe.

“China will continue to conduct investigations in strict accordance with the law, safeguard the legitimate rights of enterprises of EU member states, including France, and make rulings based on facts and evidence,” the ministry statement cited Wang as saying.

But he said China is willing to work with the European Commission towards a “proper solution” as well, without elaborating.

China opened an anti-subsidy probe into imported EU dairy products in August and an investigation focusing on pork intended for human consumption in June.

Reuters