CCCEU Statement on EC's Rejection of Price Commitment Proposals from Chinese EV Manufacturers

Brussels, September 13

The China Chamber of Commerce to the EU (CCCEU) takes note of the European Commission's reported decision to reject all price commitment proposals submitted by Chinese electric vehicle (EV) manufacturers and industry associations in response to the EU's anti-subsidy investigation. This outright rejection is profoundly disappointing and constitutes a significant setback for the ongoing dialogues and negotiations concerning the EV case.

The EU's investigation into Chinese electric vehicles (EVs), driven by protectionist motives, has distorted the level playing field for Chinese companies operating in the EU and significantly undermines both the EU's business environment and global efforts to combat climate change. Despite these challenges, Chinese companies and industry associations have put forward pragmatic solutions to address mutual concerns, with the intention of fostering dialogue and consultation. These proposals were constructive, flexible, and actionable, aiming to create a conducive environment for negotiations. However, the EU's rejection of these commitments from Chinese companies stands in stark contrast to its stated position that “the door to dialogue remains open.”

China has engaged in extensive dialogues and consultations with the EU to address the EV investigation, demonstrating a sincere commitment to resolving trade disputes through negotiation. Chinese industries have put forward feasible proposals, and several EU member states have explicitly urged the European Commission to reconsider its tariff plans. Nevertheless, the EU's lack of responsiveness to industry voices and the expectations of member states—refusing to accept Chinese industry's proposals or offer alternative solutions—has regrettably undermined industry cooperation and business confidence. This lack of sincerity in negotiations is signalling an alarming escalation in trade tensions and risks provoking a trade war. The business community is deeply concerned about the ongoing developments in the EV trade friction.

We urge the EU to objectively assess the competitive advantages of Chinese companies in the EV sector and honour its commitments regarding negotiations. As EU member states prepare to vote on definitive measures, it is imperative for the EU to return to dialogue and negotiation to achieve a constructive solution promptly. Should the EU persist in adopting protectionist trade measures, we expect China to firmly protect the legitimate rights and interests of its enterprises.

In the coming days, Chinese Minister of Commerce Wang Wentao will meet with European Commission Executive Vice-President and Commissioner for Trade Valdis Dombrovskis in Brussels. As the negotiations face increasing challenges, the Chamber views this in-person dialogue as a crucial opportunity for both sides to find common ground, address outstanding concerns, and potentially pave the way for a more balanced and constructive approach in resolving trade frictions. The timing of the meeting, close to critical EU decisions, adds more weight to the outcome, making it all but a defining moment for the future of the EV negotiations and broader China-EU relations.