China seeks to strengthen EU, Asean ties as US trade war escalates
China and European Union ready to engage on thorny issues such as electric vehicle imports as Trump’s tariff plans spark concerns
Amid an escalating trade war with the United States, China is holding frequent conversations with the European Union (EU) and the Association of Southeast Asian Nations (Asean) – its two largest trading partners by bloc – with plans to address bilateral issues and forge stronger ties.
Commerce Minister Wang Wentao held a video call with EU Trade Commissioner Maros Sefcovic on Tuesday, during which both sides agreed to immediately begin negotiations on electric vehicle (EV) pricing and discuss investment ties in the auto sector, according to a statement released by China’s Ministry of Commerce on Thursday.
They also signalled their readiness to launch market access talks as soon as possible and supported the resumption of a bilateral trade remedy dialogue to address trade frictions related to EU concerns about the diversion of Chinese exports previously destined for the US.
The concrete discussion between Wang and Sefcovic followed a more wide-ranging meeting between Premier Li Qiang and European Commission President Ursula von der Leyen earlier on Tuesday.
Following an EV dispute last year, China and the EU began negotiations on a “price undertaking” mechanism for vehicles imported by EU member states to address concerns about Chinese government subsidies and their impact on the European automotive sector. However, no agreement was reached.
At the end of October, the EU raised tariffs on China-made EVs to as high as 45 per cent after an anti-subsidy investigation.