China and the European Union have agreed to co-operate to avert planned punitive tariffs on electric cars, the Chinese Commerce Ministry said on Saturday.
Following a video meeting between Chinese Commerce Minister Wang Wentao and EU Trade Commissioner Valdis Dombrovskis, the ministry said consultations will be held on the EU's investigation into Chinese state subsidies for electric vehicles.
The European Commission recently published plans for tariffs of up to 38.1% on the import of Chinese electric vehicles. The import duties are due to come into force from early July, but could be retroactively withdrawn if the two sides reach an agreement.
Existing EU tariffs on all non-EU manufacturers of cars stand at 10%.
Tensions over Chinese exports have been rising in recent months, with the United States and the EU accusing Beijing of supporting sectors like green technologies with massive state subsidies.