China and EU seek to avoid trade war with talks on minimum EV prices – POLITICO

BERLIN — Brussels and Beijing are engaged in intense 11th-hour negotiations on Chinese electric-vehicle subsidies, raising hopes in Germany that EU duties — and a wider trade war — can still be avoided, officials familiar with the talks said.

The discussions are an attempt to solve an ongoing dispute over Beijing’s subsidies for Made-in-China EVs, which the EU says are artificially lowering prices and making it impossible for its own industry to compete.

Under discussion is the idea of setting voluntary minimum prices that would offset the market-distorting Chinese subsidies, thereby rendering the planned EU duties moot. One official described the concept as a “surcharge“ that would balance out the Chinese state aid.