China urges palatable EV trade solution from EU as France defends bloc

EU tariffs on EVs: China has urged France to push European Commission towards a solution acceptable to both European and Chinese electric vehicle industries, while France said bloc would t yield on key matters as it pushes to overturn a tariff on brandy.

EU launched an anti-subsidy investigation into imports of Chinese-made battery EVs last year and in October voted for tariffs on those vehicles. China in recent months has launched its own investigations into European pork and dairy, and imposed temporary anti-dumping measures on imports of brandy from EU in October.

Chinese Commerce Minister Wang Wentao, in a meeting with French junior trade minister Sophie Primas in Shanghai on Sunday, urged Paris to take on "an active role" to nudge EU on Chinese EVs.

He reiterated bloc's investigation was a major concern that has "seriously hindered" China-EU auto industry cooperation.

Primas told Wang that EU refuses to escalate situation and continues to trade with China "but will t yield to pressure on essential points".

"We will continue to defend fairer competition that benefits everyone," a statement from her press office showed, adding that Wang was open in ir discussions to consider propositions of French brandy producers.

Primas is on a three-day visit to challenge China over its import duties on brandy, which Paris calls political and unjustified, Reuters reported last week.

Wang told Primas Beijing's trade remedy investigations on EU brandy, pork and dairy products were in accordance with domestic industry's applications and complied with World Trade Organisation rules, "unlike EU" which was "rash" in launching its EV probe.

"China will continue to conduct investigations in strict accordance with law, safeguard legitimate rights of enterprises of EU member states, including France, and make rulings based on facts and evidence," ministry statement cited Wang as saying.

But he said China is willing to work with European Commission towards a "proper solution" as well, without elaborating.

China opened an anti-subsidy probe into imported EU dairy products in August and an investigation focusing on pork intended for human consumption in June.