Chinese electric vehicle (EV) stocks rose in Hong Kong trading on Monday following reports suggesting progress in negotiations between China and the European Union to eliminate tariffs on EV imports into the bloc.
Bernd Lange, chair of the European Parliament’s trade committee, told a German broadcaster that Brussels and Beijing were close to reaching an agreement. “We are nearing a solution: China may agree to sell EVs in the EU at a minimum price,” Lange told n-tv, without providing further details. He noted that such a move would address competition distortions caused by unfair subsidies, which had initially prompted the introduction of tariffs, as reported by Reuters last week.
Shares of Hong Kong-listed NIO Inc (HK:9866) climbed nearly 4%, while Geely Automobile Holdings Ltd (HK:0175) rose 1.7%. Li Auto (NASDAQ:LI) (HK:2015) saw a 1.4% increase, while BAIC Motor Corp Ltd (HK:1958) and BYD Co (SZ:002594) (HK:1211) gained 0.9% and 0.4%, respectively.
Earlier this year, the EU imposed import tariffs of up to 45.3% on Chinese-made EVs following a major trade investigation, a decision that Beijing strongly criticized. At the time, China’s Chamber of Commerce to the EU condemned the measures as “protectionist” and “arbitrary.”
While the European Commission and China’s Ministry of Commerce have yet to officially comment on Lange’s statements, reports indicate progress in discussions.
Lange’s remarks followed a meeting between Chinese President Xi Jinping and German Chancellor Olaf Scholz at the G20 summit in Rio de Janeiro, where the tariff issue was a key topic. Xi highlighted the global significance of resolving tariffs on Chinese EVs and reiterated China’s willingness to address the matter through dialogue. According to media reports, the EU has stated that the discussions have made technical progress, although the specifics of the agreement remain confidential.
