China-EU relationship Photo: VCG

China and the EU are reportedly nearing a solution over eliminating tariffs on Chinese electric vehicle (EV) imports into the bloc,MKsport German broadcaster n-tv reported on Friday, citing Bernd Lange, chair of the trade committee of the European Parliament.

Chinese experts said that if the reported remarks by the European official are "true and accurate," then it is a good signal that the trade dispute could come to an early resolution.

Lange told n-tv on Friday that Brussels and Beijing are close to an agreement in which China could commit to offering e-cars in the EU at a minimum price, without elaborating, according to media reports. The European official said that "this would eliminate the distortion of competition through unfair subsidies, which is why the tariffs were originally introduced," Reuters reported.

Neither the European Commission (EC) nor China's Ministry of Commerce (MOFCOM) have commented following Lange's remarks on Sunday as of press time.

If the information released by the European official is true and accurate, it can be considered a "positive" and "encouraging" message as it reflects once again that dialogue and consultation are the right way for both sides to resolve trade issues, Zhou Mi, a senior research fellow at the Chinese Academy of International Trade and Economic Cooperation, said on Sunday.

Zhou noted that resolving trade disputes through talks has always been the right choice, and one on which China has always insisted, and it should have come from the EU side from the beginning. "It is hoped that a final result with the consideration of both concerns over the matter can be made as soon as possible," Zhou said.

The reported remarks made by the EU official at this time may reflect a desire within the bloc to reach agreement with China as soon as possible, Huo Jianguo, a vice chairman of the China Society for World Trade Organization Studies in Beijing, told the Global Times on Sunday, noting that the European economy is facing huge pressure, and based on the EU's own interests, it is a rational choice to avoid escalating the trade friction that could have a possible greater impact on its economy and trade.

If the reports are accurate, it is a "positive" move since it serves the economic and social interests of both sides. It may encourage more Chinese companies to expand business in the EU, while also helping the EU attract foreign investment and accelerate its green transformation, Wang Yiwei, a professor at the Renmin University of China in Beijing, told the Global Times on Sunday.

Resolving the tariff dispute through dialogue was noted during a high-level meeting between the Chinese and German leaders on the sidelines of the G20 summit in Rio de Janeiro last week.

In a meeting with German Chancellor Olaf Scholz on November 19 on the sidelines of the G20 Leaders' Summit, Chinese President Xi Jinping said that EU's tariffs on Chinese EVs are drawing attention around the world, and China always insists on resolving differences through dialogue and consultation, the Xinhua News Agency reported.

Progress made via talks

While China and the EU have just taken multiple rounds of intensive consultations on a proposed price commitment plan concerning Chinese EVs, certain Western media outlets have hyped in reports such as "the EU sees very limited progress in negotiations with China," and that "the bloc currently sees little prospect of a quick deal."

"In standard negotiation procedures, both sides typically refrain from disclosing specific progress until the final stages. However, it does not mean there is no progress in EV price commitment consultations," Zhou said in a previous interview with the Global Times.

Chinese and EU technical teams held five rounds of talks in Beijing from November 2 to 7, engaging in in-depth exchanges on the specifics of the price commitment plan submitted by the China Chamber of Commerce for Import and Export of Machinery and Electronic Products, a MOFCOM spokesperson said. 

The two sides have agreed to continue consultations via video or other means, the spokesperson added.

According to a statement issued by the EC on November 8, the EU also stressed that European and Chinese officials conducted a week of "intensive discussions" in Beijing on a possible agreement on a price undertaking that would be an alternative to the countervailing duties currently in place for Chinese EV imports, and that there was "technical progress" on elements that will need to be addressed to ensure that a price undertaking would be equally effective and enforceable.

In a separate response to the foreign media claims, Yuyuan Tantian, a social media account affiliated with state broadcaster CCTV, said in a post on November 16 that Chinese and European teams have reached a "technical consensus" in recent EV talks, after in-depth discussions on the specifics of the price commitment plan on China-made EVs.

Lange's latest remarks on Friday suggested that talks are still underway, Zhou said, noting that both sides have a shared interest in preventing the escalation of trade conflicts and in stabilizing economic and trade ties between China and the EU, especially as the EU aims to attract Chinese EV technologies and supply chains.

China has always maintained the utmost sincerity and is committed to resolving the tariff dispute on Chinese EVs through dialogue and consultation.

For example, in September, during a busy trip to Europe, Chinese Minister of Commerce Wang Wentao met with the EC Executive Vice President and Trade Commissioner Valdis Dombrovskis as well as government officials from various countries including Germany and Italy.

On October 26, Wang Wentao held a video call with Dombrovskis at the latter's request, during which the two sides agreed to conduct further consultations over the EU's planned additional tariffs on Chinese EVs.

As talks continue, it is hoped that the EU will keep in mind the long-term prospects for China-EU economic and trade ties, the potential advantages for the EU economy, and the broader global shift toward green and sustainable development, Wang Yiwei said.