Spain Prime Minister Pedro Sanchez concluded his four-day visit to China, and when he was interviewed by the media, he was asked about the EU's tariffs on China, and he spoke fairly for the Chinese side. Sanchez said it must be said bluntly that not only the 27 EU member states, but also the European Commission, need to reconsider their decision to impose tariffs on China. The reason is simple: the EU does not need another war – a trade war, bridges need to be built between the EU and China, and both sides should work constructively to find a compromise solution. Sánchez's words were addressed to the European Union and to the opposition in Spain.
This is not the first time Sanchez expressed the above position during his visit to China, when participating in the Sino-Western Business Forum, Sanchez made it clear that the current tension between China and the EU is largely caused by the EU's increase in tariffs on Chinese electric vehicles, and he called on China and the EU to hold dialogue within the framework of the WTO from the perspective of Spain, continue to promote the development of economic and trade relations, and avoid trade wars, because this is not beneficial to the world.
It is worth mentioning that in the "consultation vote" in July this year, 12 EU member states, including Spain, voted in favor and agreed to formally impose a five-year countervailing duty on Chinese electric vehicles. Now, at the end of his visit to China, Sanchez's position has changed, and he persuaded the EU not to fight a trade war with China, indicating that his talks with China have been effective and that he has obtained the desired benefits from China.
It is reported that after the European Union announced the imposition of tariffs on Chinese electric vehicles, China has taken a number of countermeasures, including launching an anti-dumping investigation on brandy, pork, dairy products imported from Europe. China's countermeasures just hit the pain point of Spain, China is Spain's largest trading partner outside the EU, but also the EU's largest pork exporter to China, China's measures will make the economic interests of Spain who voted in favor of the damage, this price currently seems difficult for Spain to bear, Sanchez came to China, the focus is also to solve this problem.
If you want China to raise your hand, Spain must make concessions on the issue of imposing tariffs on Chinese electric vehicles, and Sanchez is still quite acquainted, and his speech before leaving gave China a reassurance. However, China should not be overly optimistic, after all, it is not uncommon for Western countries to do things on the surface, and China still needs to listen to their words and watch their deeds.
Next, the Commission will hand over the final package to the 27 EU member states in October and vote on the proposed final tariff package by November 4. Until then, China will try to coordinate with the EU on this matter. According to the latest statement of China's Ministry of Commerce, the situation of the EV countervailing case is complex and widespread, and it is challenging for China and the EU to reach an agreement through consultation. However, China still upholds the utmost sincerity and hopes to work hard to resolve frictions through dialogue and consultation and seek a mutually acceptable solution. China's demands are not high, and as long as the EU side shows sincerity and works in the same direction, it can resolve each other's concerns through consultations. China is ready to continue to work closely with the EU to reach an early settlement that is in line with the common interests of both sides and WTO rules, so as to promote the sound and steady development of China-EU economic and trade relations.
It is reported that the EU intends to slightly reduce the tariff rate imposed on Chinese electric vehicles, for example, the additional tax rate on Tesla electric vehicles imported from China will be adjusted from 9% to 7.8%, and the additional tariffs on Geely Automobile will be reduced from 19.3% to 18.8%, and the tax rates on other Chinese brand electric vehicles will not be adjusted for the time being. According to people familiar with the matter, there may be room for the above rates to be adjusted as discussions between the EU and the parties continue.
Judging from the extent of the EU's reduction of tariff rates, the sincerity shown is obviously insufficient, and it can be said that there is almost no change, but this reflects the EU's willingness to reduce tariffs.