China and European Union to Negotiate Electric Car Tariffs

The risk of soaring Chinese electric car prices in the EU could be easing after both sides agreed to negotiate a planned series of import taxes.

Top officials from both regions spoke about the tariffs on a call on Saturday and agreed to discuss them further, though frictions remain.

The call marks the first time the two sides have agreed to negotiate since the EU threatened China with electric vehicle, EV, tariffs of up to 38 per cent.

The EU said Chinese EV were unfairly subsidised by its government.

In response, China accused the EU of protectionism and trade rule breaches.

An EU spokesperson told the BBC the call between Trade Commissioner and his Chinese counterpart was “candid and constructive”.

They said the two sides would “continue to engage at all levels in the coming weeks”.

However, the spokesperson also doubled down on the EU opposition to how the Chinese EV industry is funded.