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China’s pressure tactics on EU tariffs appear to be paying off: As a vote on EU tariffs for Chinese-made electric vehicles approaches, Beijing has adopted a carrot-and-stick strategy with the 27-member bloc, threatening trade retaliation while simultaneously enticing key EU countries into individual discussions on agreements and investments, Reuters reports. Spain, traditionally a key advocate for the EU’s proposed tariffs on China-made EVs, has now urged the bloc to reconsider its position following a visit to China by Spanish Prime Minister Pedro Sanchez last week.
The game plan: China has made trade retaliation threats against EU countries supporting tariffs on China-made EVs — namely Spain, France, and Italy — while EU countries holding back on pushing the tariffs — Germany, Finland, and Sweden — are not being targeted by trade retaliation. The latter will see less of an impact by China’s retaliatory anti-dumping investigation into European pork, dairy, and brandy exports.
Hitting them where it hurts: EU pork, dairy, and brandy exports to China amounted to some USD 10 bn in 2023, making China one of their “top export markets,” Beijing-based economist Mei Xinyu told the newswire.
Italy’s sending mixed signals: Although Italy has announced that it supports “the duties that the EU commission proposes,” Industry Minister Adolfo Urso has said that he expects a negotiated solution, Reuters writes.
Moving forward: China’s Commerce Minister Wang Wentao is set to meet EU Commission executive VP and trade commissioner Valdis Dombrovskis on Thursday to discuss the EU’s anti-subsidy case against China.
OTHER STORIES WORTH KNOWING THIS MORNING-
- Air Canada averts strike: Canada’s national carrier Air Canada has reached a last-minute new collective agreement over four-years with the Air Line Pilots Association (ALPA), averting a strike over pay and benefits. The terms of the agreement are confidential pending a final vote from the union’s members next month. (Reuters)
