China and Spain Address EU's Anti-Subsidy Probe on Electric Vehicles in Madrid Meeting

On June 3, Chinese Commerce Minister Wang Wentao and Spanish Minister of Economy, Trade and Industry Carlos Cuerpo co-chaired the 29th China-Spain Economic and Industrial Cooperation Mixed Committee meeting in Madrid. The meeting focused on the European Union's (EU) anti-subsidy investigation into Chinese electric vehicles (EVs) and other bilateral trade issues.

Why this matters: The outcome of the EU's anti-subsidy investigation into Chinese electric vehicles could have significant implications for the global electric vehicle industry and trade relations between China and the EU. If punitive tariffs are imposed, it could lead to increased costs for European consumers and potentially disrupt the global supply chain.

The EU launched the investigation in October, alleging that Chinese EV imports benefit from distortive state subsidies, which harm European manufacturers. The EU has postponed its decision on imposing punitive tariffs until after the European Parliament elections on June 9.

Minister Wang Wentao condemned the EU's investigation, calling it 'typical trade protectionism.' He emphasized that the issue is not one of excess capacity but rather 'anxiety,' and expressed hope that the EU and China can address each other's concerns through dialogue and communication.

During the meeting, both sides discussed ways to facilitate trade and two-way investment between China and Spain. They explored cooperation opportunities in sectors such as automobiles, renewable energy, industrial machine tools, and medical equipment. Additionally, they discussed facilitating the flow of people between the two countries, government procurements, and market access for agricultural and food products.

Wang expressed China's willingness to work with Spain to enhance trade, promote two-way investments, strengthen cooperation among small and medium-sized enterprises, and expand areas of cooperation for mutual benefit. He also hoped that Spain would play a positive role in persuading the EU to maintain an open and supportive stance towards the green and new energy sectors.

Carlos Cuerpo emphasized Spain's commitment to deepening its strategic partnership with China, maintaining dialogue and cooperation, and promoting balanced development of economic and trade cooperation. He highlighted Spain's interest in exploring further cooperation opportunities in areas such as automobiles, renewable energy, industrial machine tools, and medical equipment.

The meeting underscored the importance of bilateral economic and trade cooperation between China and Spain. Both sides expressed their commitment to enhancing trade and investment relations, and expanding cooperation areas for mutual benefits. The dynamics between China and the EU will likely have far-reaching implications for the electric vehicle industry's future development and trade relations.

Key Takeaways

• China and Spain co-chaired the 29th Economic and Industrial Cooperation Mixed Committee meeting in Madrid.
• EU's anti-subsidy investigation into Chinese electric vehicles may lead to punitive tariffs, affecting global EV industry.
• China condemned the investigation as "typical trade protectionism" and hopes for dialogue to address concerns.
• China and Spain discussed cooperation opportunities in sectors like automobiles, renewable energy, and medical equipment.
• Both sides committed to enhancing trade and investment relations, expanding cooperation areas for mutual benefits.