BRUSSELS (dpa-AFX) - Following the introduction of provisional additional duties on electric cars from China, Brussels and Beijing are facing intensive negotiations. Both sides have expressed their interest in finding a solution - but whether this will succeed remains to be seen. Vice-Chancellor Robert Habeck (Greens) also negotiated in person in China almost two weeks ago, but failed to achieve a breakthrough. The parties now have four months to reach a decision as to whether high special levies will be demanded once and for all.

The EU Commission had previously conducted an extensive investigation into the extent to which e-cars from China benefit from subsidies that distort competition. The results were published yesterday in a more than 200-page regulation. From the EU's point of view, the matter is clear: there are unfair subsidies and the European car industry is threatened with damage. However, the German car industry takes a very different view.

Many markets are taking stronger action against China

Other third countries are taking much more vehement action against imports from the Far East. Although China is the largest car market in the world

- but many markets have already become more expensive for Beijing itself.

have already become more expensive. In May, the United States imposed special tariffs of 100 percent on e-cars, which has virtually blocked the market for imports from China.

"The Americans are now sealing off their market, as are Brazil, Mexico and Turkey," Commission President Ursula von der Leyen recently told Redaktionsnetzwerk Deutschland. This means that Europe remains an attractive market for Chinese companies for the time being. A negotiation solution with Beijing is considered to have a chance in Brussels.

Some of the provisional tariffs imposed by the EU authorities are significantly lower than those in the USA, for example: 17.4 percent for the manufacturer BYD, 19.9 percent for Geely and 37.6 percent for SAIC. Other companies are subject to 20.8 percent, and companies that did not cooperate with the investigation would face a 37.6 percent penalty. The duties are in addition to an existing duty rate of ten percent.

Positive reactions from German MEPs

In contrast to German politicians in government positions, German MEPs tend to take a positive view of the Commission's approach. The chairman of the CDU/CSU group in the European Parliament, Daniel Caspary, spoke of a clear message: "The EU will not be naively led around by the nose when it comes to world trade." The Chair of the Internal Market Committee in the EU Parliament, Anna Cavazzini, also sees the duties as the right decision to protect the industry from unfair dumping.

In doing so, she openly contradicts her party colleague and Baden-Württemberg Transport Minister Winfried Hermann. He had said: "This is by far the stupidest idea of the EU Commission." He fears disadvantages for German industry. Economics Minister Habeck, like Finance Minister Christian Lindner (FDP), had insisted that it was necessary to react to dumping, but warned against a possible tariff race.

The Chairman of the Trade Committee in the European Parliament, Bernd Lange, emphasized the importance of constructive dialogue between Beijing and Brussels. "There are never winners in such trade disputes," said the SPD politician.

In Germany, the EU Commission's actions are causing concern, as there are fears of retaliatory measures that could affect German car manufacturers in particular. In addition, German companies manufacture cars in China for export. FDP parliamentary group deputy leader Lukas Kohler emphasized that the punitive tariffs on e-cars should only remain a temporary measure.

Vote on definitive tariffs

As long as no final decision is taken on the introduction of the punitive tariffs, they do not have to be paid, only security deposits have to be made. If the negotiations with China do not proceed satisfactorily, the EU Commission could submit a proposal for the introduction of definitive punitive tariffs. The EU member states could only stop the proposed tariffs if a so-called qualified majority voted against the proposal.

If special tariffs are introduced, some fear that e-cars will cost more. Thomas Peckruhn, Vice President of the German Association of the Motor Trade (ZDK), said: "For consumers, this will make the available electric vehicles significantly more expensive, especially as the competitive pressure on European manufacturers will decrease."/scr/DP/zb