Spain PM asks EU to ‘reconsider’ EV tariffs plan on Chinese electric cars

As he wrapped up a visit to China, Pedro Sanchez, Spain’s prime minister, has asked the EU to “reconsider” its plan to impose tariffs of up to 36 percent on Chinese electric cars. He says Brussels and Beijing need to find a way to reach a “compromise.”
“I have to be blunt and frank with you that we need to reconsider all of us, not only member states but also the Commission, our position towards this [imposing the tariffs],” Sanchez said, while speaking at an event at Mondragon Industrial Park in Kunshan, a city neighboring Shanghai.
In August, the EU announced a plan to levy five-year import duties of up to 36 percent on electric vehicles imported from China. On November 2, there will be a vote among EU members to decide whether Brussels will implement the tariffs on EVs.
The day after the EU announced the plans for the tariffs in August, Beijing announced a WTO probe into EU subsidies of some dairy products exported to China.
Beijing has also launched anti-dumping and subsidies investigations of the EU’s brandy and pork exports.
In recent years, China and the EU have had disputes over a range of issues including trade, technology and national security.
Some fear the recent tit-for-tat actions between China and the EU may indicate a potential trade war breaking out.
“I think that we need to build bridges between the European Union and China and from Spain,” said Sanchez. “What we’ll do is to be constructive, and to try to find a solution, a compromise between China and the European Commission.”
“The government of Spain wants to consolidate the growth of our trade relations and investment with China, with a focus on green and innovative industries and avoiding that trade and geopolitical tensions damage them,” Sanchez said on Wednesday.
In an annual survey published Wednesday, the European Chamber of Commerce noted that “business confidence in China is at an all-time low.”
According to the report, many European businesses are saying they do not think the return on China investments are worth the risks, alluding to China’s weakened consumer demand and a politicized business environment.
Sanchez explained Wednesday that “it is undeniable that these [EU-China] relations need to be balanced.”
As Sanchez concluded his visit to China, Chinese President Xi Jinping met with Norwegian Prime Minister Jonas Gahr Store.
The two leaders agreed to set up green transition talks between Beijing and Oslo every two years, according to Chinese state media.
“Furthering China-Norway friendly cooperation is consistent with the will of the two peoples, the fundamental interests of the two countries, and a global trend of maintaining closer ties among countries to share weal and woe,” said Xi, according to China’s official Xinhua News Agency.
“Xi noted that the two countries’ economies are highly complementary and have seen fruitful cooperation outcomes in various fields. He called on the two sides to expand practical cooperation in fields such as environmental protection, energy transformation, maritime affairs and shipping, agricultural and fishery products, and electric vehicles,” the Xinhua report said.
Some material from this report was provided by Agence France-Presse, Reuters and AP.