EU Declares Deadline Passed for China to Discuss EV Pricing

On September 15, the European Commission announced that the deadline for Chinese manufacturers to propose minimum prices for electric vehicles (EVs) had passed, marking a significant moment in ongoing trade negotiations. The deadline was set for August 24, and the Commission emphasized that no further price offers could be accepted under the current investigation rules. This situation arises as the EU prepares to vote on imposing tariffs on Chinese EVs next month, with proposed rates varying from 9% for Tesla to 36.3% for the state-owned SAIC Group. The investigation into the Chinese EV industry revealed that substantial subsidies from the Chinese government have led to overcapacity and artificially low prices, which could disrupt the European market. The Commission's findings have prompted a strong response, as they seek to protect local manufacturers from unfair competition. If the tariffs are approved by a majority of the EU's 27 member states, they will be implemented by the end of October and will remain in effect for five years. In a related development, Italian Foreign Minister Antonio Tajani met with a Chinese official, Wang, on September 16 to discuss trade relations and security issues, including the situation in the Red Sea and military supplies to Russia. Tajani expressed support for the proposed tariffs, highlighting Italy's position as a major player in the automotive industry and its interest in attracting Chinese car manufacturers to establish operations in Italy. The upcoming vote on tariffs reflects broader tensions in international trade and the EU's commitment to ensuring fair competition within its markets, particularly in the rapidly evolving electric vehicle sector.