Media reported on EU-China talks on eliminating duties on electric cars

The European Union (EU) and China are negotiating the abolition of duties on electric cars. This was stated on November 22 by Bernd Lange, Chairman of the Committee on International Trade of the European Parliament.

"We are close to a decision with China on the abolition of duties," - quotes his words NTV TV channel.

Lange said Beijing could commit to offering electric cars in the European Union at below-minimum prices. According to him, this will help to eliminate the problem of distortion of competition caused by subsidies, which caused the imposition of duties.

Earlier, on September 15, it was reported that leading Western global brands have dominated the Chinese market for many years, but their leadership is now threatened by the rise of Chinese electric car makers such as BYD and Xpeng. These companies have changed the market significantly, overtaking Volkswagen, Ford and General Motors. Due to the rise in Chinese electric car production, Volkswagen first announced possible plant closures in Germany.

On October 4, Oliver Roth, an analyst at the Frankfurt Stock Exchange, said that the imposition of duties in the EU could lead to retaliation from China. He noted that he does not support duties as they lead to a restriction of free trade.

Later, on October 29, the European Commission (EC) announced the introduction of "definitive countervailing duties" of 35.3% on imports of electric cars from China for five years. Thus, Chinese automakers will be obliged to pay individually set amount of duties: BYD - 17.0%, Geely - 18.8%, SAIC - 35.3%, while other companies will be subject to a duty of 20.7%.