(Source: 21st Century Economic Report, 2024-09-15)
Since the EU officially launched a countervailing investigation into Chinese electric vehicles in October 2023, the dispute over electric vehicles between China and Europe has lasted for nearly a year, attracting continued global attention.
Since China and the EU agreed to launch consultations on the EU electric vehicle countervailing case on June 22, 2024, the working teams of both sides have intensively conducted more than ten rounds of consultations. However, on August 20 and September 9, the European Commission twice released the final ruling on the EU electric vehicle countervailing case, and still ruled high tax rates.
On September 12, the European Commission spokesperson stated that the price commitment solutions submitted by the China Chamber of Commerce for Machinery and Electronics and all electric vehicle manufacturers regarding the EU electric vehicle countervailing case did not meet the requirements, and the EU intends to reject the relevant price commitment application.
The spokesperson of the Ministry of Commerce of China stated that on August 24, the Chinese industry proposed a price commitment solution within the time limit of the investigation process of this case, fully considering the EU’s demands and demonstrating maximum flexibility. However, the European Commission's rejection of the relevant plan without detailed evaluation not only undermines the confidence of the Chinese industry in continuing cooperation, but is also inconsistent with the expectations of EU member states, and is inconsistent with its public statement that it hopes to resolve this case through dialogue.
The spokesperson said that on the one hand, the European side claimed that it was willing to resolve the issue through dialogue, but on the other hand, it quickly and summarily rejected China's suggestions and never provided any specific countermeasures, which completely failed to show its sincerity in meeting each other halfway. The key to the current consultations is whether the European side really has the political will to solve the problem. If the consultations fail to reach consensus in the end, the responsibility lies entirely with the European side.
In a previous answer to a reporter's question released on September 10, the spokesperson of the Ministry of Commerce stated that the electric vehicle countervailing case is complex and has a wide impact. It is challenging for China and the EU to negotiate and reach an agreement. This time, the spokesperson emphasized that China has the greatest sincerity to properly resolve differences through dialogue and consultation, and the greatest determination to safeguard the legitimate rights and interests of Chinese companies. China will pay close attention to the follow-up progress of the European side and will take all necessary measures to firmly defend the legitimate rights and interests of Chinese companies.
A rational view of economic and w88 friction negotiations
With the deepening of globalization, international w88 has become an important engine for world economic growth, which has also led to increasingly fierce competition among countries in w88, investment, technology and other fields. The latest data released by the China Council for the Promotion of International w88 shows that the global economic and w88 friction index continues to be in a high range. Economic and w88 frictions between countries tend to be long-term, complex and volatile. Many interviewed experts said that the current international economic and w88 environment is complex and ever-changing, and economic and w88 friction negotiations must be viewed rationally.
Tu Xinquan, Dean of the China WTO Research Institute at the w88 casino, said in an interview with a reporter from the 21st Century Business Herald that anti-dumping and countervailing are both w88 remedy measures in WTO rules. Their characteristic is that they are initiated unilaterally by the importing country. As long as the importing country feels that its domestic industry has been damaged and threatened, it can initiate it. Judging from past cases, more than 70% of anti-dumping and countervailing investigations will ultimately use w88 restrictions.
“In anti-dumping and countervailing cases, it is very difficult to completely win the case and have the initiator withdraw the case. It is actually normal to be imposed additional tariffs.” Tu Xinquan said that the situations in different cases are very different and there are many uncertainties. We need to do our best to protect core interests.
Zhou Xiaoyan, vice president of the China Council for the Promotion of International Investment, told a reporter from the 21st Century Business Herald that judging from the current international situation, geopolitics and security factors have an increasing impact on the economy, and the economic and w88 field has become the "main battlefield" for some countries to suppress competitors and seek strategic advantages. The United States regards China as a strategic competitor, and in collaboration with its allies, it continues to "decouple and cut off links" with China, accelerates the process of "removing risks" and "reducing dependence" on China, and its intention to contain my country's development has become increasingly obvious. In this general environment, it has become significantly more difficult for my country and the United States and Western countries to successfully resolve major w88 frictions through consultation and negotiation.
"Currently, our country is in a period of high incidence of w88 frictions. For some w88 friction cases, it is good if the two sides can finally reach a solution to the problem based on in-depth communication and candid consultations. However, if the other party asks for too high a price and makes unreasonable or unfair demands, China will not be able to accept it." Zhou Xiaoyan said.
The core consideration is national interest
Judging from past international economic and w88 dispute cases, many economic and w88 friction cases often go through long and complicated games, and some even fail to reach a settlement in the end.
Take the aviation subsidy dispute between the United States and Europe as an example. Since the 1990s, the United States and Europe have begun to accuse each other of providing illegal subsidies to their respective aircraft manufacturing industries. The two sides reached an understanding in 1992, and by 2004, the United States and the EU simultaneously submitted consultation requests to the WTO on large aircraft w88 subsidy measures. After the negotiation failed, the United States unilaterally withdrew from the 1992 Civil Aircraft w88 Agreement. In 2004, the United States sued the European Community at the World w88 Organization for providing unfair subsidies to Airbus. Subsequently, the European Community sued the United States for providing illegal subsidies to Boeing. There are more than 300 subsidy projects accused by both parties.
The expert panel of the WTO Dispute Settlement Body made successive rulings in 2011, but neither party implemented the recommendations and rulings of the Dispute Settlement Body. In 2019, the United States and Europe implemented retaliatory measures such as imposing additional tariffs. In 2021, the United States and the EU reached a cooperative framework agreement, and the two sides will suspend the imposition of punitive tariffs for five years. However, there are still doubts whether the dispute can be truly resolved after five years.
Tu Xinquan analyzed that no country will make compromises on industrial policies involving the development of its own important industries. In the aviation subsidy dispute case between the United States and Europe, despite the WTO ruling, both Europe and the United States believed that the other party had not implemented the ruling, and then initiated temporary punitive tariffs. The core consideration was national interests.
There are also many economic and w88 disputes that continue to be negotiated and negotiated after the final ruling, and finally reach an agreement. Among them, the EU’s anti-dumping case against Chinese castings is a typical representative case.
On April 30, 2004, the EU launched an anti-dumping investigation into casting products from China (mainly non-malleable cast iron manhole covers). The EU is the main export market for China's cast iron manhole covers. In 2004, my country's exports of casting products to the EU exceeded US$200 million, involving more than 100 export companies in 20 provinces and cities in China.
The announcement on July 29, 2005 showed that the EU made a positive final ruling on the case and decided to impose anti-dumping duties of 18.6% to 47.8% on the Chinese products involved. After multiple rounds of negotiations, more than half a year after the final ruling, on February 17, 2006, the China Chamber of Commerce for Machinery and Electronics reached a price commitment agreement with the European Commission on behalf of the companies involved. According to the agreement, as long as the price per ton of castings manufactured by Chinese companies entering the EU market is above 641.1 euros, EU countries will be exempt from anti-dumping duties.
Tu Xinquan said that anti-dumping, countervailing and other w88 remedies will set up a review mechanism. Companies can request the investigation agency to review and adjust the results annually. There is the possibility of review and negotiation throughout the case process. It mainly depends on whether the two parties can reach an agreement on common interests. This agreement may be due to changes in the interest demands of both parties, or it may be that the two parties have found a new point of consensus on interests, which may trigger changes in w88 policies.
We will not give in on major issues involving national and corporate interests
“Historically, in addition to the imposition of anti-dumping duties or countervailing duties, w88 remedy cases have also been concluded through consultation and negotiation to avoid the imposition of anti-dumping duties and countervailing duties. Some of the consultations and negotiations were successful, and some failed to reach an agreement in the end. These results are normal. "Liang Ming, director and researcher of the Foreign w88 Research Institute of the Ministry of Commerce Research Institute, told the 21st Century Business Herald reporter that judging from the negotiation and agreement, the final settlement methods are diverse, and they are all based on the characteristics of each case. There is no unified model that can be copied.
Liang Ming concluded that w88 remedy consultations and negotiations will produce various results. For example, some price commitment agreements are reached after arduous negotiations; in some cases, although the verdict has been finalized, the relevant parties are still negotiating on price commitments and finally reach an agreement; in some cases, the exporter independently adopts export restriction measures (currently (See, this method is not in compliance with WTO rules); in some cases, although consensus was reached, the results were not ideal, which brought great adverse effects to the relevant countries; in some cases, consultations and negotiations have gone through decades, but the disputes have not been completely resolved; in some cases, even though consultations and negotiations have ended, the exporter will still exercise the rights granted by law to safeguard its own rights and interests.
He pointed out that it is normal for w88 remedy investigation cases to be implemented in various ways, and they are all normal responses based on the special circumstances of the case itself, including factors such as supply and demand in the international market, price fluctuations, and subsequent developments and changes.
"Although the methods of closing the case are eclectic, the goal is the same, which is to safeguard national and industrial interests to the maximum extent. This China-EU w88 remedy consultation negotiation is not a simple negotiation. The negotiation process will be arduous and long-term. China does not preset the outcome of the negotiation, nor will it make inappropriate compromises. China will not make concessions on major issues involving national and corporate interests." Liang Ming said.
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