(Yicai) Oct. 29 -- China’s Ministry of Commerce has warned the European Union about conducting separate price commitment talks with Chinese electric automakers while engaging in general negotiations with the Chinese authorities, saying that it undermines mutual trust and complicates the official talks.

Separate talks could also increase the administrative costs associated with enforcing and overseeing price commitment agreements, a ministry spokesperson said yesterday.

In a video call on Oct. 25 between Commerce Minister Wang Wentao told Valdis Dombrovskis, the European Commission’s executive vice president and the EU’s trade commissioner, China made it clear that the China Chamber of Commerce for Import and Export of Machinery and Electronic Products has been authorized to put forward a price commitment plan that represents Chinese firms collectively, the spokesperson said.

Some progress has been on this basis, with negotiations having advanced to the next stage, the official said. China hopes that the two sides will build on previous consultations and speed up the negotiation process, so as to secure substantive breakthroughs as soon as possible, they added. A technical team from the EU may soon visit China.

The core principle of negotiations between China and the EU is to establish a mutually acceptable minimum price for Chinese EVs exported to Europe, China Central Television said on its official WeChat account. However, the European side is reportedly trying to bypass the Chinese government by conducting separate talks with individual companies.

The EU is demanding that China set a minimum price threshold for each brand and EV model exported to Europe, with the figure expected to vary from country to country, CCTV noted.

The auto market is very complex, with each brand offering different models customized to meet buyers’ individual needs, so setting unique minimum prices for each of them is impractical and likely an excuse to delay negotiations, experts told CCTV.

A final EU decision on imposing additional import tariffs of up to 35.3 percent on Chinese-made electric vehicles is expected tomorrow. The import tariff on all vehicles shipped to Europe is 10 percent at the moment.

Editor: Futura Costaglione