China has issued a stern warning to the European Union, urging it to refrain from engaging in separate negotiations regarding the prices of Chinese-made electric vehicles (EVs). The Chinese Ministry of Commerce, in a statement published on its website, expressed concern that such independent negotiations would “shake the foundations” and erode mutual trust in their ongoing bilateral tariff negotiations. While the ministry did not provide concrete evidence of the EU conducting these separate talks, it referenced “relevant reports” as justification for its concerns.
The warning comes on the heels of Brussels’ rejection of a Chinese proposal that sought to establish a minimum price of €30,000 ($32,000) for EVs manufactured in China and sold within the EU. Beijing had hoped this proposal would prevent the imposition of EU tariffs on these vehicles, a move scheduled for next month.
The Chinese ministry clarified that various manufacturers, including European-owned companies operating in China, have authorized the China Chamber of Commerce for Machinery and Electronics to propose a price commitment plan that reflects the industry’s overall stance. This plan, the ministry stated, serves as the foundation for the ongoing China-EU consultations.
The Chinese government’s strong stance underscores the importance it places on these negotiations and its desire to maintain a stable and mutually beneficial trade relationship with the EU. The EU’s decision to reject the Chinese proposal and its potential consideration of separate price negotiations could significantly escalate tensions between the two economic giants.
