China issues new warning to EU over separate EV talks

The European Union's plans to begin holding separate negotiations with electric vehicle (EV) manufacturers while continuing talks with China have been repeatedly warned about by China. Such actions could 'shake mutual trust' and disrupt the overall negotiation process between the two entities, the Chinese Ministry of Commerce warned.

The China's China warned is just days after China and the EU reached a deal to continue talks regarding alternative tariffs for Chinese EVs. Similar concerns had been raised earlier this month when the ministry echoed its statement.

China and the EU have both clarified that price commitments will still be central to resolving the dispute over tariffs on electric vehicles. According to the ministry, their talks have already progressed and the next phase of consultations is ongoing.

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At a positive note, Beijing also said it is ready to talk and invited the EU team to China for on site visits with a view to facilitating further dialogue as soon as possible. The invitation shows that China wants to take an accommodating tack in the face of rising trade and market access tensions.

Given the evolution in the global automotive industry toward electric vehicles, these negotiations are important for both regions. This will have a big bite in the EV market but also in broader trade relations between China and the EU. Both sides appear to be eager to continue talks to bridge trade concerns while echoing a mutually advantageous relationship.