Optimistic signals from China on trade talks with the EU

China and the European Union have reached "technical agreement" on a number of points in their talks on reducing or reversing import duties imposed by the EU on electric vehicles produced in China. This follows, according to news agency Bloomberg, from a message on social media platform Weibo from an account affiliated with the Chinese state broadcaster CCTV.

Tensions between the EU and China have increased recently after the EU launched an investigation into the import of electric vehicles. According to the European Commission, Chinese car manufacturers benefit from high government subsidies, making it difficult for European manufacturers to compete. In response, the EU has increased import duties on electric cars from China, sometimes by up to ten percent.

Both sides are still exploring whether they can agree on a complex arrangement to control prices and export volumes, which would allow tariffs to be phased out again. China and the EU held talks on the matter from November 2 to 7, after which they said they had made "technical progress" and would continue negotiations.

The agreement already reached would refer to certain agreements that both sides have made in their talks on a general framework. "This also indicates that both sides are willing to focus their resources on negotiating core interests and working towards the same goal," Bloomberg quotes CCTV reporting.

According to the latest reports, Brussels sees very limited progress in the negotiations and sees little chance of a quick deal. According to CCTV, reports of this nature would be "deliberately misleading to the public opinion" and disrupt the negotiation process.

The issue of electric cars is not the only trade dispute between China and the EU. Brussels also launched an investigation into the Chinese government's procurement of medical devices in April. China is not deterred by the EU investigations and has also launched its own investigations, including in the European pork and dairy sectors. In addition, Beijing has already announced measures against the dumping of EU brandy on the Chinese market.