China Responds to EU’s Plan to Reject Price Commitment Solution in Electric Vehicle Anti-Subsidy Case

The Ministry of Commerce spokesperson answered questions from reporters on the European Commission’s plan to reject the price commitment solution submitted by the Chinese industry in the EU electric vehicle anti-subsidy case.

Question and Answer

Q: On September 12, a spokesperson for the European Commission said that the price commitment solutions submitted by the China Chamber of Commerce for Machinery and Electronics and all electric vehicle manufacturers in the EU electric vehicle anti-subsidy case did not meet the requirements, and the EU intends to reject the relevant price commitment applications. What is China’s comment on this?

A: China has noted the relevant statements made by the EU. China is deeply disappointed that the European Commission has ignored the sincerity and efforts of the Chinese industry and proposed to reject the flexible solution proposed by the Chinese industry without in-depth communication.

Background and Context

On August 20 and September 9, the European Commission released two final rulings on the EU’s anti-subsidy case against electric vehicles, continuing its wrong practices and imposing high tariffs. China cannot agree with or accept this, but it has always been sincere and worked hard to properly resolve frictions through dialogue and consultation.

On August 24, the Chinese industry proposed a price commitment solution within the time limit of the investigation procedure of this case, fully considering the demands of the EU and showing maximum flexibility. The Chinese industry said that its price commitment proposal is fully compliant and enforceable, and all technical issues can be solved through consultation. It is understood that many EU member states have also shown great interest in the price commitment solution.

China’s Position and Next Steps

The European Commission’s rejection of the relevant proposal without a detailed assessment has not only undermined the confidence of the Chinese industry in continuing cooperation, but also failed to meet the expectations of EU member states and their public statement that they hope to resolve the case through dialogue.

Since China and the EU agreed to launch consultations on the EU’s anti-subsidy case for electric vehicles on June 22, the working teams of both sides have conducted more than ten rounds of intensive consultations. China has submitted tens of thousands of pages of facts and evidence to the EU, proposed flexible solutions, and made tremendous efforts.

However, the EU claimed that it was willing to resolve the issue through dialogue, but on the other hand, it quickly and hastily rejected China’s proposals and never gave any specific countermeasures, which showed no sincerity at all. If the consultations ultimately fail to reach a consensus, the responsibility lies entirely with the EU.

The key to the current consultations lies in whether the EU has the political will to resolve the issue. China urges the EU to earnestly implement the important consensus reached at the trilateral meeting between the leaders of China, France and the EU on properly handling economic and trade frictions through dialogue and consultation, show sincerity and take action, and seriously consider the reasonable concerns of the Chinese industry.

China has the utmost sincerity to properly resolve differences through dialogue and consultation, and the utmost determination to safeguard the legitimate rights and interests of Chinese companies. China will closely follow the EU’s subsequent progress and will take all necessary measures to firmly safeguard the legitimate rights and interests of Chinese companies.