China’s commerce ministry stated on Thursday that the country is hopeful that talks with the European Union would result in a “mutually acceptable solution” over provisional tariffs on Chinese electric cars (EVs) that are set to go into effect on July 4.

According to Chinese state media, Beijing wants the EU to abandon its plans to impose the curbs. However, if a negotiated solution is to be reached, Brussels has made it clear that it expects China to present a roadmap for “addressing the injurious subsidisation” of its electric vehicle industry at this week’s technical talks.

China maintains that its EV business has developed due to advantages in technology, market share, and industrial supply networks, and has consistently refuted claims of improper subsidies.

“At the moment, the working teams of both sides are closely coordinating and intensifying their discussions,” a spokeswoman for the trade ministry, He Yadong, stated at a routine press briefing.

“It is hoped that the EU and China will work in the same direction … and reach a mutually acceptable solution to avoid the escalation of trade frictions adversely affecting China-EU economic and trade relations,” he stated.

The ministry of commerce also said that it had received and was examining information related to an EU trade barriers probe that had been submitted on behalf of China’s electronic goods industry.

(Adapted from Investing.com)

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