During an international investment summit organized by the Labour government on Monday, UK Secretary of State for Business and Trade, Jonathan Reynolds, stated that the UK does not plan to follow the EU in imposing tariffs on electric vehicles imported from China. He mentioned that UK businesses have not lodged any complaints or requested an investigation into the matter. Reynolds emphasized the importance of increasing engagement with China, noting, “As Secretary of State, I certainly have the authority to make recommendations… We have been analyzing this closely, but it’s crucial to recognize that our industry is different, and so far there have been no requests submitted to the UK’s Trade Remedies Authority.”
Reynolds expressed that his primary focus is to provide a “prosperous and open export market” for UK manufacturers. He also highlighted that current priority for the UK is to engage in trade negotiations with India and the Gulf Cooperation Council.
In his remarks, Reynolds criticized the previous Conservative government’s approach to relations with China, stating that Britain’s engagement has put it at a disadvantage compared to other G7 nations. “For instance, our country’s relationship with China is not comparable to that with the United States or other European nations,” he noted.
On October 4, the European Commission announced that it had garnered the necessary support from member states for a proposal to impose tariffs on electric vehicles imported from China. This announcement was met with significant opposition across Europe. Reports indicated that the number of EU members supporting these tariffs was far lower than those voting against them or abstaining. Major European car manufacturers like Volkswagen, BMW, and Mercedes-Benz labeled the proposal as a “wrong approach” and a “fatal signal” for the European automotive industry. Additionally, Germany’s largest trade union in the metal industry expressed concern that these tariffs would not enhance the competitiveness of European auto manufacturing, advocating instead for a fair competitive environment through negotiations.
After 20 days of discussions, a Chinese technical team returned home from Brussels on October 12, following intense negotiations regarding the EU’s proposed countervailing duties on Chinese electric vehicles. The Chinese Ministry of Commerce confirmed that since September 20, European and Chinese technical teams had held eight rounds of talks in Brussels, achieving significant progress in some areas. However, the EU has not responded positively to core concerns from the Chinese side, leaving major disagreements and no acceptable solution reached thus far.
A spokesperson for the Chinese Ministry emphasized that China’s willingness and sincerity to seek solutions through dialogue remain unchanged. China has formally invited the EU to send a technical team to China for the next phase of face-to-face discussions, expressing readiness to facilitate such meetings. The spokesperson expressed hope that the EU would reciprocate and arrange a constructive visit to expedite the negotiations toward a satisfactory resolution.
