EU Council President Michel perceives ongoing potential for consensus with China
EU Chief Charles Michel spots potential for resolution in the trade clash with China. "I get the feeling that the entryway hasn't locked up entirely yet, but we're in some seriously tough terrain," Michel shared with AFP news agency during the ASEAN summit in Laos. "We concur that a trade war is detrimental and it's crucial to steer clear of it."
The EU delegation urged China to shift its tactics. "We rely on China to rectify its conduct and grasp that we need to level our economic interactions for a more level playing field, more balanced competition." Michel had a meeting with Chinese Prime Minister Li Qiang at the ASEAN assembly.
The EU has chosen to levy taxes of up to 35.3% on electric vehicles imported from China. The accusation is that Beijing provides its auto manufacturers with an unreasonable competitive edge with unwarranted subsidies. These taxes are scheduled to be implemented in November, with discussions ongoing to strike a deal. Notably, the German administration opposes these taxes.
The EU Commission proposed these taxes quite a while ago. The Chinese side has consistently threatened retaliation with their own trade sanctions, mainly focusing on agricultural goods like pork and dairy products. This week, Beijing implemented its first threat, levying taxes on European liquor, with French cognac producers being hit hardest.
The EU and China are currently engaged in negotiations to avoid the implementation of the EU's proposed taxes on Chinese electric vehicles, seeing the potential for an Agreement that avoids a damaging trade conflict. The EU strongly believes that an Agreement on fair trade practices is needed to ensure a level playing field and balanced competition between the two economies.
