EU “wants a level playing field”, but is still negotiating with China on car tariffs

BERLIN (Reuters) – The European Union wants a level playing field with China on car tariffs and is negotiating with Beijing on mechanisms such as price commitments or investment in Europe as a solution, EU Commission chief Ursula von der Leyen said on Monday.

In a speech alongside Chancellor Olaf Scholz in Berlin, she said negotiations with China would continue even if EU tariffs on Chinese electric vehicles come into force. Scholz expressed the hope of reaching an agreement by the end of October.

“For example, what might be the compensation offered in lieu of countervailing duties? And there is the question of price commitments that are on the table, investments in Europe,” said von der Leyen. “These are all questions that are on the table, as always in negotiations. Only when the last piece is negotiated is everything negotiated.”

The two leaders met in Berlin as the EU prepares to impose high import tariffs on electric vehicles made in China, measures that Germany and its auto industry oppose for fear of retaliation in the huge Chinese market.

They spoke on the same day that Chinese and European automakers squared off at the Paris Motor Show, where Chinese electric vehicle giant BYD warned that the EU’s planned tariffs would only lead to higher prices and deter buyers.

Earlier this month, EU member states narrowly backed import tariffs on Chinese-made electric vehicles of up to 45% to counter what the European Commission says are unfair subsidies from Beijing to Chinese manufacturers. Beijing denies unfair competition and threatens countermeasures.

(Reporting by Andreas Rinke and Friederike Heine; Text by Matthias Williams; Editing by Alex Richardson)