Eu: Discussions with China on tariffs on electric vehicles were frank and productive

Brussels/HANGZHOU (Reuters) - The European Union has had "frank and productive" talks with Chinese trade officials on tariffs on electric vehicles and the two sides will continue, a European Union spokesman said.

The European Union warned this month that it would impose provisional duties of up to 38 per cent on Chinese electric vehicles from July following an anti-subsidy investigation. Such a move would raise the risk of a trade war between China and Europe.

AFP reported Sunday (June 23), EU spokesman Gil said that the European Commission's executive Vice president and trade commissioner Dombrovskis 22 and Chinese Minister of Commerce Wang Wentao held video talks on the EU's anti-subsidy investigation of electric vehicles in China, "frank and productive" consultations.

Gill said the EU stressed that any outcome of the anti-subsidy investigation must effectively address the issue of damaging subsidies. Discussions will continue at all levels in the coming weeks.

China's Ministry of Commerce also announced on its website Saturday that Wang Wentao was invited to hold video talks with Dombrovskis. The two sides agreed to start consultations on the EU's anti-subsidy investigation of electric vehicles in China.

German Economy Minister Friedrich Habeck, who is currently in China, said in an interview in Hangzhou on Sunday that China's cooperation is indispensable to meeting global climate goals and called on China to find safer power supply options than coal.

He said cooperation with China must be strengthened, "without China's cooperation, it is impossible to achieve global climate goals."

Officials have told Harbeck that China is expanding coal production for energy security. 60% of China's electricity supply last year came from coal-fired power plants. Habeck said the same level of energy security could be achieved with fewer coal-fired power plants.

Habeck also said that China imports a lot of gas and oil because China has seen what has happened in Europe and Germany in the last two years. He was referring to the energy crisis in Europe and Germany triggered by Russia's invasion of Ukraine.

As China expands coal production, it also installed nearly 350 gigawatts (GW) of new potential renewable energy capacity last year, more than half of the world's total.

"Economic growth and climate protection are not at odds," Habeck said. "Building a climate-neutral economy is not only good for the climate, it also creates new wealth and growth opportunities."