French cognac makers protest against EU's tariffs on Chinese EVs

Some 800 protesters riding tractors gathered in the southwestern French town of Cognac this week demanding a delay to an upcoming European Union vote to impose duties on Chinese electric vehicles (EVs).

Fearing retaliatory duties from China if the dispute escalates, the union head for Cognac's brandy makers has warned a decision to levy tariffs on Chinese EVs will jeopardize the entire brandy industry.

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French cognac makers protest against EU's tariffs on Chinese EVs

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French cognac makers protest against EU's tariffs on Chinese EVs

The European Commission, the bloc's executive arm, decided in early July that provisional tariffs of up to 37.6 percent would be slapped on Chinese-made EVs.

On August 20, the commission published a draft plan to make those tariffs definitive, at slightly revised rates, subject to approval by European Union member states.

According to the disclosed information, the anti-subsidy tax rates for the three sampled Chinese EV companies, BYD, Geely, and SAIC, are 17.0 percent, 19.3 percent, and 36.3 percent, respectively.

The European Union plans to hold a vote to introduce these definitive tariffs on Sept. 25.

Earlier this month, the EU received offers from EV makers in China for minimum import prices into the union as a way of avoiding tariffs, but rejected all of them.

China's Ministry of Commerce has warned of countermeasures in response to this unilateral move of the EU to defend the legitimate rights and interests of Chinese enterprises.

Li Hongzhong, vice chairman of the National People's Congress Standing Committee, met with the European Parliament's delegation for relations with China led by chair Engin Eroglu in Beijing on Wednesday.

Li, also a member of the Political Bureau of the Communist Party of China Central Committee, said that China is willing to work with the European Union (EU) to strengthen communication, enhance mutual trust, deepen cooperation, and pursue mutual benefit and win-win outcomes.

He said China stands ready to join hands with the EU to address global challenges, promote exchanges and cooperation among legislative bodies, effectively utilize communication mechanisms, and advance the sound and stable development of China-EU relations.

Eroglu said the EU stands ready to work with China to contribute to the development of EU-China relations.