China's Commerce Ministry said on Monday that it has decided to file a lawsuit with the World Trade Organization against the European Union's final countervailing measures on Chinese-made electric vehicles. It is a move the Chinese side has been compelled to take to defend its legal rights and interests regarding its trade frictions with the bloc.
Since the EU imposed "anti-subsidy" tariffs up to 35.3 percent on Chinese-made EVs, above the existing 10 percent duty on imported cars, late last month, Beijing has further intensified its diplomatic efforts to resolve the issue and avert a trade war.
In his meeting with visiting French Minister Delegate for Foreign Trade and French Nationals Abroad Sophie Primas in Shanghai on Sunday, ahead of the seventh China International Import Expo being held in the city from Tuesday to Sunday, Chinese Commerce Minister Wang Wentao called on France to play an active role in pushing the European Commission to show sincerity and meet the Chinese side halfway.
Wang talked with European Commission Executive Vice-President and Commissioner for Trade Valdis Dombrovskis on the phone on Oct 25, in which the two sides agreed to conduct further consultations over the EU's additional tariffs on Chinese-made EVs.
Li Xi, secretary of the Communist Party of China Central Commission for Discipline Inspection, meanwhile, met with Italy's Senate President Ignazio La Russa, and Deputy Prime Minister and Foreign Minister Antonio Tajani in Rome during his visit from Wednesday to Saturday, stressing that China and Europe share extensive common interests in upholding multilateralism.
Li stressed that China advocates for resolving relevant economic and trade issues through consultation based on pragmatic and balanced principles and urged the Italian side to view China-Europe economic and trade relations "with an open attitude and a long-term perspective", and play a constructive role in China-Europe consultations and negotiations.
Understandably, Primas said that agricultural and food products are a significant part of France's trade with China, and France is very concerned about China's investigation into EU products such as brandy. And it is good to hear the French trade chief say that France does not wish to see any escalation of the current trade tensions between the two parties, and Paris hopes that the two sides can resolve their trade differences through talks and consultations.
Also, Italian Foreign Minister Tajani emphasized China's role as a vital economic partner, noting that Italy hopes to strengthen economic and trade exchanges with China, fostering a balanced and mutually beneficial relationship. He reiterated Italy's commitment to open economic policies and to actively work toward resolving trade frictions between Europe and China through negotiations.
These exchanges have laid a good foundation for China to strengthen communications with the two countries and other major EU economies that have supported the tariffs, including the Netherlands and Poland, so as to find a mutually acceptable way to resolve the disputes at an early date.
Although France and Italy are only two EU member states among the 10 that supported the tariffs, they account for 28 percent of the EU's total population, making them the countries that could tilt the balance in a future vote. It would have taken opposition from a qualified majority of 15 EU members, representing 65 percent of the EU's population, to cancel the additional tariffs. That five EU member states oppose the tariffs, including Germany, and 12 abstained clearly shows the rift within the bloc on the issue, as even the supporters, including France and Italy, know the tariffs obstruct the EU's green transition, do not help to boost the EU's EV industry's competitiveness, and have only prompted China to retaliate.
China responded to the punitive EU tariffs by taking countermeasures against imported pork, dairy products and brandy from the EU from last month. The ball is clearly in the EU's court to settle the dispute. The one that ties the knot is obligated to untie it.
