China has agreed to negotiate with the EU on the increased tariffs on electric vehicles (EVs) following discussions between China's commerce minister, Wang Wentao, and EU trade commissioner Valdis Dombrovskis.
The decision emerged during a visit to Beijing by Germany’s vice-chancellor, Robert Habeck, aimed at easing tensions.
The EU's decision to impose tariffs up to 48% on Chinese EVs is under review after last year's anti-subsidy investigation. Habeck welcomed the talks but emphasised the need for further steps, according to Reuters, the FT and other outlets.
Germany has expressed concerns about the tariff increase, as China is a crucial market for its car industry. Any retaliatory actions by Beijing, such as its anti-dumping probe into EU pork products, could impact Germany significantly.
Habeck also criticised China's increased exports to Russia, particularly dual-use goods that could be used militarily, calling for a halt to such trade, according to reports.
While in Beijing, Habeck met with officials to discuss energy, climate, and human rights issues, although a meeting with Premier Li Qiang did not occur. He urged China to reduce coal use to help meet global climate targets, highlighting the necessity of China's participation in these efforts.
Germany's Chancellor Olaf Scholz had previously met with President Xi Jinping to discuss ending the Ukraine conflict and seeking better market access for German businesses in China.