China Issues Final Ruling in EU Electric Vehicle Subsidy Investigation
China’s government announced its final ruling on Friday regarding an investigation initiated in response to an EU inquiry into electric vehicle subsidies, escalating tensions ahead of a summit in China scheduled for July 24 and 25. Reports indicate that Beijing is expected to cancel the second part of the summit, further straining diplomatic relations, reports 24brussels.
The Chinese ruling follows the EU’s imposition of anti-dumping duties of up to 35 percent on electric vehicles manufactured in China, a measure taken last October that particularly affected French luxury cognac brands. This action reflects Beijing’s dissatisfaction with France’s perceived endorsement of the EV subsidy investigation.
In parallel to these developments, Beijing and Brussels have been engaged in negotiations concerning minimum import prices for electric vehicles; however, no consensus has yet been reached.
Florent Morillon, president of France’s cognac governing body BNIC, stated, “This decision marks the end of the anti-dumping investigation, but not the end of our efforts to ensure that all our exporters regain unhindered access to the Chinese market as quickly as possible.”
This announcement comes ahead of a meeting between French Foreign Minister Jean-Noël Barrot and his Chinese counterpart Wang Yi, who is currently touring various European capitals this week. The evolving situation highlights the intricacies of trade relations between the EU and China, as both parties navigate the economic implications of their actions.
As tensions rise, observers will be closely monitoring how these developments impact not only trade but also diplomatic engagements between Europe and China.
