China EV stocks rise on reports of progress towards EU tariff deal

Chinese electric vehicle (EV) stocks rose in Hong Kong trade on Monday after media reports stated that China and the European Union were close to reaching a solution on eliminating tariffs on imports into the bloc.

Brussels and Beijing are nearing a solution on tariffs on Chinese electric vehicle imports into the bloc, Bernd Lange, chair of the trade committee of the European Parliament, told a German broadcaster.

"We are close to an agreement: China could commit to offering e-cars in the EU at a minimum price," Bernd Lange told n-tv, without elaborating. "This would eliminate the distortion of competition through unfair subsidies, which is why the tariffs were originally introduced," Reuters had reported last week.

Shares of Hong Kong-listed NIO Inc (HK:9866 ) were nearly 4% higher, while Geely Automobile Holdings Ltd (HK:0175 ) shares rose 1.7%.

Li Auto (NASDAQ:LI ) (HK:2015 ) shares rose 1.4%, while BAIC Motor Corp Ltd (HK:1958 ) and BYD Co (SZ:002594 ) (HK:1211 ) were up 0.9% and 0.4%, respectively.

The European Union had earlier this year hiked import tariffs on Chinese-made electric vehicles by up to 45.3% in a high-profile trade investigation, a decision that drew ire from Beijing.

China's Chamber of Commerce to the EU at the time expressed profound disappointment with the "protectionist" and "arbitrary" measure.

Although neither the European Commission nor China’s Ministry of Commerce has officially commented on Lange’s remarks, progress in the discussions has been reported.

Lange’s comments came just days after Chinese President Xi Jinping and German Chancellor Olaf Scholz discussed the issue during the G20 summit in Rio de Janeiro. Xi emphasized that tariffs on Chinese EVs are a global concern and reiterated China’s commitment to resolving the issue through dialogue.

The EU has indicated that the discussions have yielded technical progress, but the details of the agreement remain under wraps, according to media reports.

Source: Investing.com