The main reason for the EU-China tariff discussions is the European Union's plan to impose tariffs of up to 38 percent on electric cars imported from China, in addition to an existing 10 percent tariff on imported cars2. The European Commission found that China's electric car sector is heavily subsidized by the government and state-controlled banking system, posing a growing challenge to Europe's automakers.
The primary representatives in the EU-China tariff talks are China's commerce minister, Wang Wentao, and the European Union trade commissioner, Valdis Dombrovskis2. They will engage in discussions regarding the European Union's plan for tariffs on electric cars from China.
The EU proposes additional tariffs on Chinese electric cars because it believes that China's electric car sector is heavily subsidized by the government and state-controlled banking system, giving them an unfair competitive advantage.