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Per Reuters' report on Thursday, the European Union and China have reached an understanding to consider instituting some lower limit on the pricing of electric vehicles produced in China instead of the tariff which the EU instituted last year.
Citing other German newspapers such as Handelsblatt, the report claims that some form of negotiations have already started.
Referring to the Reuters report, Sefcovic EU Trade spoke with the Chinese Commercial minister Wang Wentao in the last day or two and they both consented on the deal where they set minimum pricing on the specific vehicles.
They King’s Commercial Ministry of China proclaimed at the same time that those negotiations would begin immediately.
Sefcovic added that the price level must serve those suggesting the price better than the EU tariffs. The previous EU suggested deals on minimum pricing resulted in a barter system focused on primary goods instead of commodities which are more intricate such as motor vehicles.
The European Commission holds the position that one single minimum price would probably strip government policies intended to offset subsidies from their effectiveness.
This month Brussels boosted areas of the EU offered on Chinese manufactured electric vehicles to a staggering 45.3%. Simultaneously there is discussion coming for both sides anywhere around the EU proposing lifting the said points of the target in return for promises to put border control on the pricing of vehicles entering the EU.
The report added that the European Commission is prepared to further negotiate with China on an alternative to the one proposed which included a 17.0% tariff on vehicles manufactured by BYD (002594.SZ), open new tab, 18.8% on Geely (GEELY.UL), and 35.3% on SAIC (600104.SS), open new tab, alongside the standard 10% EU car import duty.
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