China-EU Photo: VCG

China and Europe have solid foundations and vast potential for auto industry cooperation,MK sports and China welcomes European automakers, including Mercedes-Benz, to expand investment in China and deepen their presence in the Chinese market, Chinese Minister of Commerce Wang Wentao said during a video call on Friday with Ola Källenius, president of the European Automobile Manufacturers' Association (ACEA) and chairman of Mercedes-Benz. 

The two sides exchanged views on the EU's anti-subsidy moves targeting Chinese electric vehicles (EVs), as well as China-Europe auto cooperation, according to the official website of China's Ministry of Commerce (MOFCOM).

Properly resolving the EU's anti-subsidy case regarding Chinese EVs is in the best interests of both China and the EU, as well as the industry, Wang Wentao said.

The commerce minister expressed hope that the ACEA and Mercedes-Benz would continue to play an active role in urging the European Commission (EC) to make a political decision as soon as possible. Building on the progress made through multiple rounds of consultations, both sides should work together to reach a constructive solution acceptable to all parties at an early date, the minister said.

Källenius said during the call that the European auto industry, including Mercedes-Benz, is highly attentive to the case of China's EVs in Europe, and there are hopes that both sides can resolve their differences through dialogue and consultation, according to MOFCOM.

Mercedes-Benz will uphold its long-term commitment to the Chinese market and further deepen its cooperation with China, Källenius said.

On October 29, the EU concluded its anti-subsidy investigation by imposing definitive countervailing duties on imports of battery EVs from China for a period of five years, the EC said in a press release on its website.

On October 30, China said it "does not recognize or accept" the EU's final ruling and filed a suit at the WTO under its dispute settlement mechanism.

The China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCME) filed a lawsuit with the EU on behalf of Chinese EV enterprises, challenging the violation by the EC of the EU Anti-Subsidy Regulation in its investigation into Chinese EVs, the CCCME said in a statement on January 24.

The EC's decision to impose additional tariffs on Chinese EVs has raised concerns, with many politicians and businesses within the bloc opposing it, citing its potential impact on EU businesses and the risk of escalating trade tensions with a key trading partner.

"The trade friction between China and Europe in the EV sector can be resolved through technical solutions, as there are no fundamental issues at play," Wang Yiwei, director of the EU research center at the Renmin University of China, told the Global Times on Friday.

China's EVs are cost-effective and contribute positively to the green transformation, aligning with the EU's carbon reduction goals. While there is competition, it is naturally market-driven, and trade issues can be resolved through dialogue and consultation, Zhao Junjie, a senior research fellow at the Institute of European Studies at the Chinese Academy of Social Sciences, told the Global Times on Friday.

As 2025 marks the 50th anniversary of diplomatic relations between China and the EU, it is hoped that a solution will be reached soon that serves the interests of both sides, providing a stronger foundation for greater economic and trade development in the future, Zhao said.