BERLIN, (Reuters) – The European Union wants a level playing field with China on car tariffs and is negotiating with Beijing on mechanisms such as price commitments or investments in Europe as a solution, European Commission chief Ursula von der Leyen said on Monday.
Speaking alongside German Chancellor Olaf Scholz in Berlin, she said negotiations with China would continue even if the EU’s tariffs on Chinese electric vehicles entered into force. Scholz expressed hope of reaching an agreement by the end of October.
“What could be the compensation that is offered instead of countervailing duties, for example? And there is the question of price commitments that are on the table, investments in Europe,” von der Leyen said. “These are all questions that are on the table, as always in negotiations. Everything has only been negotiated when the last piece has been negotiated.”
The two leaders met in Berlin as the EU prepares to impose hefty import tariffs on Chinese-made electric vehicles, measures that Germany and its car industry oppose, fearing retaliatory measures in the vast Chinese market.
They were speaking on the same day as Chinese and European automakers went head-to-head at the Paris car show, where Chinese EV giant BYD warned the EU’s planned tariffs would only lead to higher prices and deter buyers.
Earlier this month, EU member states narrowly backed import duties on Chinese-made EVs of up to 45%, meant to counter what the European Commission says are unfair subsidies from Beijing to Chinese manufacturers. Beijing denies unfair competition and has threatened counter-measures.
Reporting by Andreas Rinke and Friederike Heine Writing by Matthias Williams; Editing by Alex Richardson
