The European Union (EU) and China have officially resumed negotiations regarding the elimination of high tariffs imposed on Chinese electric vehicles.
On the 10th (local time), Reuters reported that the European Commission announced that Trade Commissioner Maroš Šefčovič and China's Ministry of Commerce Minister Wang Wentao agreed to resume negotiations, which would include a proposal for setting a minimum price for electric vehicle exports.
The EU Commission explained that the timing for resuming negotiations was agreed upon within the last 24 hours. Earlier, the German economic newspaper Handelsblatt reported that both sides had agreed to resume negotiations at a meeting at the end of last month, but the EU side has now formalized more recent discussions.
The EU and China reportedly found common ground through a video call on the 8th. At that time, China's Ministry of Commerce also stated that both sides agreed to seek cooperation in the automotive industry alongside the initiation of negotiations on electric vehicle export prices.
Last October, the EU imposed additional countervailing tariffs ranging from 7.8% to a maximum of 35.3% after determining that low-priced electric vehicles subsidized by the Chinese government were disrupting the European market. As a result, the total tariff rate on Chinese electric vehicles has increased from 17.8% to 45.3%.
At one point, the EU and China attempted negotiations for a so-called price agreement to set a 'minimum export price' instead of a tariff, but they could not narrow their differences and the talks were halted. However, with U.S. President Trump recently imposing high tariffs on China starting with steel, the EU is interpreted to be moderating its criticism while seeking to restore relations.
As the tariff war with the United States intensifies, China has seen the need for strategic cooperation with the EU increase. The EU is preparing for a summit with China in July this year, and it has been reported that President Xi Jinping is considering changing the meeting location from Brussels, where the EU headquarters is located, to Beijing.
Meanwhile, after the United States announced the postponement of reciprocal tariffs on countries excluding China for 90 days, the EU decided to suspend retaliatory tariffs and focus on negotiations with the U.S.
Accordingly, there are observations that the EU's level of engagement in negotiations with China may vary depending on the future dynamics of U.S.-China conflicts.
EU spokesperson Olov Jil noted that "improving trade and economic relations with China remains an unwavering goal," while adding that "China's trade barriers and unfair competition issues must be resolved."