Illustration: Xia Qing/GT

In response to questions concerning consultations on the issue of the EU's anti-subsidy investigation into Chinese electric vehicles (EVs), the spokesperson of China's Ministry of Commerce (MOFCOM) said on Saturday that through hard work, the two sides have made important progress in some areas … but, it is regrettable that the EU has failed to actively respond to the core concerns of both Chinese and European industries, there are still major differences. So far, the two sides have yet to reach a mutually acceptable solution on the issue.

Although China is sincere in advancing consultations, the EU side has kept making unreasonable demands, which, combined with other factors, makes consultations difficult.

Technical teams from China and the EU have conducted eight rounds of intensive negotiations since September 20 in Brussels, demonstrating China's tremendous efforts, sincerity and goodwill in seeking a fair, reasonable and mutually acceptable solution through negotiations.

The spokesperson for the MOFCOM said that China has fully considered the demands and opinions of both Chinese and European industries, and repeatedly proposed pragmatic and constructive solutions to address the EU's concerns, demonstrating utmost sincerity and flexibility.

In the case of the EU's anti-subsidy investigation into Chinese EVs, the European Commission initiated the investigation without a formal complaint from the industries within the EU, which clearly goes against the market's will. 

It is even more regrettable that, in the process of consultations, the EU side has continuously failed to objectively look at the actual needs of European industries and the actual situation of mutually beneficial cooperation among supply chain partners, turned a deaf ear to the concerns and voices of European EV manufacturers, and insisted on proposals that are not in line with the interests of bilateral industries, resulting in a failure to reach a consensus. 

The EU side should be held responsible for the fact that disputes are not resolved in time through consultations, as well as any potential outcome that may cause a lose-lose situation for both Chinese and European industries.

If some European politicians hadn't tried to formulate and execute protectionist policies similar to a trade "defense system" and crack down on made-in-China EVs that enjoy high competitiveness, mutually beneficial cooperation among Chinese and European industries could have been taken to a new level as a natural result of economic complementarity in the EV industries.

It is regrettable to see that there are some differences between China and the EU, especially in the field of the green economy, where European protectionism has been on the rise. Solutions to differences and disputes between the two sides will be impossible without practical cooperation that is in line with economic reality and their respective interests.

Once the EU imposes higher customs duties on EVs imported from China, both Chinese and European auto companies will become victims, and European consumers will have to pay higher prices because of the increased threshold for Chinese-made EVs to enter European countries. 

Although China and the EU have yet to reach a consensus on their EV disputes and much uncertainty remains, one thing seems clear: China and Europe have no choice but to cooperate, otherwise there will be a lose-lose situation for both sides. We hope that European political elites will increasingly realize that the most effective way to safeguard Europe's economic interests is mutually beneficial cooperation rather than trade protectionism.

The spokesperson for the MOFCOM said that China's attitude and sincerity in seeking a solution through dialogue and consultation remain unchanged, adding that China has formally invited the EU to send a technical team to carry on the next phase of face-to-face consultations, and it has made all necessary preparations.

We hope the EU side can cherish the sincerity and goodwill of China. Chinese people love cooperation, but they clearly know that mutually beneficial cooperation is not something to beg for. The common goal of achieving a win-win result should remind European policymakers to work together with China to promote mutual market openness in the EV industry and stop advocating trade protectionism.