What's happened
The EU is set to impose tariffs of up to 35.3% on Chinese-made electric vehicles starting next week, following an anti-subsidy investigation. Negotiations continue amid pressure from Beijing on its carmakers to pause European investments, raising concerns about a potential trade war.
Why it matters
What the papers say
According to Bloomberg, EU trade chief Valdis Dombrovskis and Chinese Commerce Minister Wang Wentao discussed ongoing negotiations, agreeing to continue technical talks. Meanwhile, the South China Morning Post reported that GAC International is reviewing its plans for European expansion amid the tariff threat, highlighting the cautious approach of Chinese manufacturers. Jens Eskelund from the EU Chamber of Commerce in China warned of an unavoidable trade war if current trends continue, emphasizing the need for both sides to address broader trade imbalances.
How we got here
The EU's decision to impose tariffs follows an investigation into Chinese subsidies for electric vehicles, which began in September 2023. This move aims to protect European carmakers from a surge of low-cost Chinese imports.
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China, officially the People's Republic of China, is a country in East Asia. It is the world's most populous country, with a population of around 1.4 billion in 2019.
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The European Union is a political and economic union of 27 member states that are located primarily in Europe. Its members have a combined area of 4,233,255.3 kmĀ² and an estimated total population of about 447 million.
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Ursula Gertrud von der Leyen is a German politician and the president of the European Commission since 1 December 2019. She served in the federal government of Germany from 2005 to 2019 as the longest-serving member of Angela Merkel's cabinet.