A drone view shows BYD electric vehicles ready for export to Brazil at Lianyungang port in Jiangsu province, China. China has long rejected accusations of unfair subsidies, saying the development of its EV industry has been the result of advantages in technology, market and industry supply chains.

BEIJING (June 27): China hopes negotiations will lead to a "mutually acceptable solution" with the European Union (EU) on preliminary tariffs on Chinese electric vehicles (EVs) scheduled to take effect on July 4, its commerce ministry said on Thursday.

Beijing wants the EU to scrap plans to impose the curbs, Chinese state media reports, but Brussels has made clear that it expects China to come to technical talks taking place this week with a road map for "addressing the injurious subsidisation" of its EV industry if there is to be a negotiated outcome.

China has long rejected accusations of unfair subsidies, saying the development of its EV industry has been the result of advantages in technology, market and industry supply chains.

"At present, the two sides' working teams are in close communication and stepping up their consultations," said He Yadong, a commerce ministry spokesperson, at a regular news conference.

"It is hoped that the EU and China will work in the same direction ... and reach a mutually acceptable solution to avoid the escalation of trade frictions adversely affecting China-EU economic and trade relations," he added.

The commerce ministry also said it had received and was reviewing materials submitted on behalf of China's electronic products industry concerning an EU trade barriers investigation.

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