Spanish Prime Minister Pedro Sánchez has urged for a truce between the EU and China on the imposition of tariffs.
During his state visit to the communist country, the PM urged both powers to find common ground in the hopes of avoiding a possible trade war during a speech on September 11.
Asked if Spain would reconsider EU tariffs on Chinese-made electric vehicles during his visit to the Mondragon Industrial Park in Kunshan, near Shanghai, Sánchez appeared open to the possibility.
We don’t need another war, in this case a trade war.
“I have to be frank, we have to reconsider our position, all of us,” he said. “Not only the Member States but also the [European] Commission.”
“We don’t need another war, in this case a trade war. I think we need to build bridges between the European Union and China, and from Spain, we will be constructive and try to find a compromise between China and the European Commission.
He added: “We don’t need another war, in this case a trade war. I think we need to build bridges between the European Union and China, and from Spain, we will be constructive and try to find a compromise between China and the European Commission.
“The government of Spain wants to consolidate the growth of our trade relations and investment with China, with a focus on green and innovative industries, and avoiding that trade and geopolitical tensions damage them.
“Nevertheless, as I said earlier, I believe that it is undeniable that these relations need to be balanced,” he said.
Since last year, EU officials have been investigating Chinese electric vehicle (EV) manufacturers amid worries they were flooding the European market with low-cost vehicles produced with “unfair” financial support from Beijing.
In retaliation, China has suggested the EU could be doing the same in its market with dairy products, brandy, EU pork and pork-derived produce.
Officials in Beijing have expressed their displeasure after the European Union imposed new tariffs on imported Chinese biodiesel. https://t.co/yc6FhpxkSY
— Brussels Signal (@brusselssignal) July 25, 2024
According to customs data, the EU accounted for more than half of the approximately 560,000 tonnes imported by China in 2023.
Spain alone contributed around a quarter of this, with exports valued at €1.2 billion.
Sánchez said he wanted an “honest dialogue to solve existing tensions”.
“And what do we propose from Spain? A solution negotiated and agreed in the WTO framework, that contributes to developing balanced and fair and avoids commercial escalation that benefits no-one,” Sanchez said.
The Spanish PM pleaded for a “fair trade order”.
On September 9, when meeting Chinese President Xi Jinping, Sánchez said: “We must work together to resolve differences through negotiation, in a spirit of dialogue and collaboration, and within multilateral frameworks.”
On September 10, Reuters reported that the EU planned to trim down proposed tariffs on Chinese EVs.
Its penalties on Chinese-made Tesla cars would drop from 9 per cent to 7.8 per cent while those on Geely EVs would drop from 19.3 to 18.8 per cent.
BYD would remain under a 17 per cent tariff rate. SAIC and other chinese companies that refuse to cooperate with the EU would still receive the 35.3 per cent peak rate.
These tariffs are on top of the EU’s standard 10 per cent import duty for cars.
Member States are set to vote on these tariffs on China in October. Beijing is pushing to overturn them.
A Chinese electric vehicle manufacturer and partner of Germany’s Volkswagen has said it was looking to produce cars in the European Union to bypass new import tariffs imposed by Brussels. https://t.co/byZKt5iAF6
— Brussels Signal (@brusselssignal) August 28, 2024
