EU rejects Chinese EV duty proposals amid subsidy concerns

The European Commission has dismissed China's proposals to establish minimum prices or volume caps on electric vehicle imports, citing that these measures would not sufficiently counteract the detrimental effects of Chinese subsidies. This decision comes as the EU prepares to vote on imposing significant duties on Chinese-made EVs, which range from 7.8% to 35.3%. The duties aim to neutralize the financial advantages provided by the Chinese government to its electric vehicle manufacturers. China's Minister of Commerce, Wang Wentao, is scheduled to meet with the EU's trade chief, Valdis Dombrovskis, in a last-ditch effort to negotiate a solution before the vote on September 25. The EU's stance reflects a broader concern over unfair trade practices and the need for compliance with World Trade Organization regulations. The outcome of the vote is uncertain, especially with indications that some EU member states, like Spain, may reconsider their positions on the duties. The Commission's spokesperson emphasized the importance of any proposals from China aligning with international trade rules and effectively addressing the identified subsidies. As the situation develops, the EU remains open to negotiations, but the rejection of the current proposals signals a firm approach to protecting its market from perceived unfair competition.