China and the EU have launched talks on the EU's anti-subsidy investigation into battery electric vehicle (EV) imports from China ahead of the planned start of provisional duties in early July.
The European Commission announced provisional duties ranging from 17.4% to 38.1% on Chinese EV manufacturers, on top of the existing 10% tariff, starting from July 4.
However, China and the EU have now agreed to hold consultations to try to reach an acceptable solution before the duties are imposed.
Germany's Economy Minister Robert Habeck stated that this marks an initial step, and further negotiations will be necessary.
China has denied accusations of unfair subsidies, arguing that the growth of its new energy industry is the result of technological advantages and market competition. The two sides will need to make progress in the talks before the provisional duties take effect and the investigation concludes in November.
