Trade Beijing warns EU against separate price negotiations with car manufacturers

China continues to strive for a negotiated solution in its dispute with the European Union over subsidized electric cars. However, the country has now warned the EU against conducting additional price negotiations with car manufacturers alongside consultations on countervailing duties.

This would "shake the foundation of negotiations and mutual trust", the Chinese Ministry of Commerce said in a statement.

The Chinese side has "demonstrated utmost sincerity and flexibility" in the negotiations so far, the statement continued. It called on the EU to send a delegation to China as soon as possible to continue the next phase of consultations.

The EU had previously rejected a Chinese proposal that electric cars produced in China should be sold in Europe at a mandatory minimum price of 30,000 euros. Beijing had hoped that this step would avert the introduction of EU countervailing duties.

At the beginning of the month, a vote among EU member states cleared the way for tariffs on electric cars from China. This allows the EU Commission to decide to introduce duties of up to 35.3%.

For its part, China responded last Tuesday with a provisional measure against European brandy. As the Chinese Ministry of Commerce announced, importers of relevant brandy varieties will have to pay a deposit of 30.6 to 39 percent of the value of the goods to Chinese customs from this Friday. The EU Commission announced that it would take action against the measure at the World Trade Organization (WTO).

Beijing accuses Brussels of protectionism with regard to the e-car tariffs. The EU is ignoring facts and disregarding the rules of the World Trade Organization.