New Delhi

China is urging the European Union to lift its provisional tariffs on Chinese-made electric vehicles (EVs) ahead of the July 4 deadline, as reported by China's state-run Global Times newspaper.

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Talks between the two economic blocs are set to resume after both sides have agreed to engage in discussions.

The EU imposed preliminary duties on Chinese EVs of up to 38.1 per cent in October 2023. The bloc claims these tariffs are necessary to counter what it views as excessive subsidies provided to Chinese EV manufacturers.

China denies the accusations, stating that the success of its EV industry is due to advancements in technology, market dominance, and a strong domestic supply chain for EV components.

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Beijing is eager to avoid a full-blown trade war, especially after encountering difficulties due to tariffs imposed by the United States during the Trump administration.

However, China has warned that it will take necessary measures to protect its companies if a trade war erupts.

The EU trade chief Valdis Dombrovskis and China's Commerce Minister Wang Wentao are set to have discussions following a phone call.

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This call took place during a visit by the economy minister of Germany to China, where he indicated that the EU is open to discussions on the issue.

The Global Times, citing unnamed observers, said that the EU rescinding the tariffs before the July 4 deadline would be the best outcome.

The newspaper also warned that the EU's increasingly protectionist stance could lead to retaliatory actions from China, potentially escalating trade tensions and harming both economies.

The EU is expected to conclude its investigation into alleged unfair subsidies in November 2024, at which point the provisional tariffs will be finalised.

(With inputs from Reuters)