Chinese electric cars in Europe. Beijing is changing its approach to the dispute with the EU
The decision of the Chinese authorities was made on Thursday. The Ministry of Commerce in Beijing announced a change of position after the European Commission agreed to exempt one of the models produced in China from punitive tariffs. This is the Cupra Tavascan, owned by the Volkswagen group.
“We hope that more Chinese companies will reach an agreement with the European side on price commitments,” He Yadong, spokesman for China's Commerce Ministry, said at a press conference on Thursday. The representative of the ministry added that the aim of the current activities is a “soft landing” in the ongoing dispute over subsidies. This is a clear change in Beijing's current strategy, which previously advised companies against independent talks with Brussels.
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China is changing its approach. It's about electric cars
The turning point in the negotiations was the EC's consent to the Cupra brand's application. The Tavascan model produced in Anhui province has so far been subject to an additional duty of 20.7%. From now on, Volkswagen will be able to import this car on the basis of an established minimum price and quantity limits.
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The trade conflict began in 2023, when the European Commission initiated an investigation into Chinese subsidies for the electromobility sector. Brussels argued that state subsidies artificially lower the prices of cars from China, which harms European producers. Beijing has rejected these allegations from the beginning. Last year, the Community finally imposed additional tariffs on Chinese electric cars ranging from 7.8 to 35.3 percent, depending on the manufacturer.
