Breaking News: Brussels Rejects China's Proposal for Minimum Price on Electric Vehicles, Escalating Trade Dispute with EU
In a recent development, Brussels has rejected a proposal by the Chinese government to set a minimum price of 30,000 euros for imported electric vehicles made in China. This move was aimed at avoiding potential EU tariffs set to be imposed next month.
The European Commission dismissed the minimum price offers from Chinese EV makers as part of an anti-subsidy investigation, leading to a significant trade dispute between Beijing and the European Union. Negotiations between the two parties are ongoing, with specific details of the compromises not previously reported.
Electric cars in China cost significantly less compared to Europe and the United States, with Chinese carmakers enjoying various cost advantages and subsidies from the government. The average retail price of a battery-electric car in China is around 32,000 euros, while in Europe it is 66,000 euros.
Brussels cited concerns not only about the pricing of China-made EVs but also the subsidies received by manufacturers. The rejection of the Chinese proposal has put pressure on both sides to reach a deal before tariffs of up to 45% on EVs built in China are imposed from Oct. 31.
As negotiations continue, a potential solution could involve individually calculated minimum prices for each carmaker and model type. The time is running out to reach an agreement, with tariffs looming unless a Plan B is agreed upon.
In summary, the rejection of China's proposal by Brussels has escalated tensions in the ongoing trade dispute, with potential implications for the pricing and availability of electric vehicles in Europe. Investors and consumers should closely monitor the situation for any further developments that could impact the automotive industry and international trade relations.