Logo 19 Sep 2024

Wang Wentao’s EU EleVator pitch

Commerce Minister Wang Wentao is lobbying EU members to reconsider tariffs on Chinese-made EVs.

This week, Wang has met separately with German Economic Minister Robert Habeck in Berlin and Italian Economic Development Minister Adolfo Urso in Rome.

Some context: Wang’s EU trip comes just ahead of a planned EU vote on finalizing the bloc’s tariffs on Chinese EVs.

Wang asked Habeck to be a team player (Reuters 1):

  • "It is hoped that Germany…will take the lead in playing an active role and urge the European Commission to…work together with China to properly resolve the case."

Berlin is reportedly receptive to Beijing’s overtures.

  • On Tuesday, the SCMP reported Germany was making calls to EU capitals to persuade them to oppose the tariffs.

Wang talked up Sino-Italian trade and investment potential with Urso, but warned that (Reuters 2):

  • “The EU probe into Chinese EVs has seriously affected the confidence of Chinese auto firms to invest in Italy”

And check this: The date for the tariff finalization vote, initially scheduled for September 25, has reportedly been postponed amid all the wheeling and dealing (Politico).

Get smart: Despite clear signs of progress, it’s unlikely that China will be able to flip enough votes to avert the tariffs altogether.

  • Still, one-on-one diplomacy has been reasonably effective in shifting EU members into a more conciliatory stance.
  • That’s an argument in favor of a restrained Chinese response.

What to watch: Wang will meet with EU Trade Chief Valdis Dombrovskis in Brussels on Thursday.

  • We’ll be parsing the outcome of that meeting to see how China’s pitch is received at the bloc level.
sources

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Commerce Minister Wang Wentao is lobbying EU members to reconsider tariffs on Chinese-made EVs.
This week, Wang has met separately with German Economic Minister Robert Habeck in Berlin and Italian Economic Development Minister Adolfo Urso in Rome.
Some context: Wang’s EU trip comes just ahead of a p...