China and France in a Trade Tango Over Electric Vehicles and Brandy

China has urged France to influence the European Commission towards a mutually beneficial solution for electric vehicle industries while France insists on maintaining its stance over tariffs on brandy. The trade dynamic is tense with China investigating European imports and the EU imposing tariffs on Chinese electric vehicles.

In the latest chapter of the ongoing trade tensions between China and the European Union, China has called upon France to play a mediating role in resolving disputes over electric vehicles. China is advocating for a balanced outcome that considers the interests of both European and Chinese electric vehicle sectors. Meanwhile, France has affirmed its position on key issues related to tariffs on brandy.

The European Union launched an anti-subsidy investigation into Chinese battery electric vehicle imports last year. This move culminated in an October decision to impose tariffs on these vehicles. In response, China initiated its own investigations, targeting European pork, dairy, and brandy—with temporary measures imposed on the latter.

During a meeting in Shanghai between Chinese Commerce Minister Wang Wentao and French junior trade minister Sophie Primas, Wang emphasized the detrimental impact of the EU's inquiry on China-EU auto industry collaboration. While China expressed a willingness to seek a resolution, it remains committed to its investigations, citing alignment with World Trade Organization guidelines.

(With inputs from agencies.)