EU set for crunch vote over Chinese electric vehicle tariffs

EU member states are expected to vote on October 4 over whether to impose tariffs on imported electric cars from China.

The European Commission plans to levy the duties after an EU investigation found that Chinese state subsidies were unfairly undermining European competitors.

China says that the rulings were "non-compliant, unreasonable, and unfair".

Beijing also filed an official complaint with the WTO (World Trade Organization) about the inquiry, claiming that the investigation "lacks a factual and legal basis" and "seriously violates" the trade body's rules.

The EU wants to introduce the tariffs to level the playing field to protect its car industry, but Germany and Spain have criticized the move, fearing a possible trade war with China.

Registration of China-built electric vehicles rose from 3.5 percent of the EU market in 2020 to 27 percent in the second quarter of this year and Chinese car brands jumped from 2 percent to 14 percent.

France and Italy support the measures, and President Macron has previously said China's level of subsidies was "unbearable".

But French cognac makers are concerned about reciprocal duties from Beijing on their exports.

China has launched its own investigation earlier this year into European wine-based liquors.

French brands constitute 99 percent of China's cognac imports.

The impact on exports of that spirit could be wide-ranging if Beijing imposes reciprocal duties.

"First of all, I believe that they will try to sell more in the European market, and in France particularly," said Clara Punch, manager of the Drinking Better Company.

"I believe that a lot of big houses of cognac will still stand in the market. However, the small houses will die because they will not be able to sell their product any more."

China's commerce minister Wang Wentao was in Brussels for last-ditch talks in September but the meetings broke up without agreement.

The Chinese government has warned of major consequences for bilateral trade if the EU goes ahead with the proposed auto tariffs.

But Wang also said China made efforts to resolve the issue properly through dialogue and consultation.

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