The European green oil industry is concerned about massive and potentially fraudulent imports of biofuels from Asia. This fraud consists of importing so-called “used cooking oil biofuels” which are in fact biofuels made from virgin palm oil.

(Adds background, quotes from analysts)

By Joe Cash and Ryan Woo

BEIJING, June 24 (Reuters) - Beijing wants the European Union to scrap its preliminary tariffs on Chinese electric vehicles by July 4, China's state-controlled Global Times reported, after an agreement by both sides to hold new trade talks.

Provisional EU duties of up to 38.1% on imported Chinese-made EVs are set to kick in by July 4 while the bloc investigates what the EU claims are excessive and unfair subsidies to Chinese EV makers.

China has repeatedly called on the EU to cancel its tariffs, expressing a willingness to negotiate. Beijing does not want to be embroiled in another tariff war, still stung by U.S. tariffs on its goods imposed by the Trump administration, but says it would take all steps to protect Chinese firms should one happen.

Both sides agreed to restart tariff talks after a call between EU Commissioner Valdis Dombrovskis and Chinese Commerce Minister Wang Wentao on Saturday during a visit to China by Germany's economy minister, who said the doors for discussion are "open".

The best outcome of the talks is that the EU scraps its tariff decision before July 4, Global Times reported late on Sunday, citing observers.

The EU's increasingly protectionist moves will trigger countermeasures from China, and an escalation in trade frictions would only lead to "lose-lose" results for both sides, the newspaper said.

The tariffs are set to be finalised on Nov. 2 at the end of the EU anti-subsidy investigation.

The Chinese commerce ministry did not immediately respond to a Reuters request for comment.

TRADE WAR?

EU trade policy has turned increasingly protective over concerns that China's production-focused development model could see it flooded with cheap goods as Chinese firms look to step up exports amid weak domestic demand.

China has rejected accusations of unfair subsidies or that it has an overcapacity problem, saying the development of China's EV industry has been the result of advantages in technology, market and industry supply chains.

"When European Commission President Von der Leyen announced she would investigate China's new energy vehicles... I had an intuitive feeling it was not only an economic issue but also a geopolitical issue," said Zhang Yansheng, chief research fellow at the China Center for International Economic Exchanges.

"Personally, I think it is unfair to start a tariff war by only taking into consideration the capacity utilisation rate and insufficient demand," he added.

Trade relations between the 27-strong bloc and the world's No. 2 economy took an abrupt turn for the worse when the European Parliament voted in May 2021 to freeze ratification of what would have been a landmark investment treaty because of tit-for-tat sanctions over allegations of human rights abuses in China's Xinjiang region.

Beijing and Brussels came to blows again that year when China downgraded diplomatic ties with Lithuania and told multinationals to sever relations with the Baltic state after Vilnius invited democratically governed Taiwan, which China claims as part of its territory, to open a representative office in the capital.

ARMED AND READY

Although Beijing is calling for talks, it has also indicated that it has retaliatory measures ready if the commission does not back down, and that it considers Brussels

wholly responsible

for the escalating tensions.

The Global Times, which first reported that China was considering opening a tit-for-tat anti-dumping investigation into European pork imports - which the commerce ministry announced last week it would undertake - has also teed up an anti-subsidy investigation into European dairy goods and tariffs on large-engined petrol cars.

Chinese authorities have dropped hints about possible retaliatory measures through state media commentaries and interviews with industry figures.

"It seems probable that Beijing will raise tariffs up to 25% for Europe-made cars with 2.5 or above litre engines," said Jacob Gunter, lead analyst at MERICS, a Berlin-based China studies institute.

"Pork and dairy are already on the table for Beijing, and likely more agricultural products will be threatened," he added. "On the EU side, there are a variety of ongoing investigations using the new toolkit that Brussels has assembled, so we should expect some sort of measures targeting distortions on (Chinese) products ranging from medical devices to airport security scanners to steel pipes." (Reporting by Joe Cash and Ryan Woo. Editing by Gerry Doyle)

SINO/EU PerMed mini SR

Kazakhstan’s Minister of Science and Education, Sayasat Nurbek, is expanding international collaborations to provide Kazakh youth with new educational opportunities while boosting the economy.

Calves are spending long hours on transporters with no access to food, cattle are taking long sea journeys in grotesque conditions to be slaughtered in barbaric facilities - animal welfare groups are demanding better from the EU.

The European Green Deal is “an agenda of economic modernisation” rather than an ecological agenda, said the head of the European Commission’s climate department at a recent Euractiv event. Industry and competitiveness gaining prominence.

In today’s edition of the Capitals, find out more about Germany’s Scholz worried about shifting public opinion on Ukraine support, Poland consdering to close its border with Belarus, and so much more.

The Romanian government approved a decree on amending the Mining Code to facilitate the reopening of non-energy mining operations, Economy Minister Radu Oprea announced on Friday.

Bulgaria's largest pro-Russian far-right party, Vazrazhdane (Revival), is ready to form a government if other parties in parliament accept its conditions for a referendum on leaving NATO and rejecting the euro.

Russia said on Sunday (23 June) that the United States was responsible for a Ukrainian attack on the Russian-annexed Crimean peninsula with five US-supplied missiles that killed four people, including two children, and injured 151 more.

The European Commission has announced that it is looking into the recent legislative changes affecting Slovak public broadcaster RTVS, passed by parliament on Thursday and awaiting the president’s approval, raising concerns about the law's impact on media freedom.

Poland is not ruling out closing its two remaining border crossings with Belarus to counter the hybrid activities of Alexander Lukashenko's regime, Foreign Minister Radoslaw Sikorski has said.

Estonia’s Prime Minister Kaja Kallas has been tipped as the EU’s new chief diplomat in the new top jobs package, but her tough stance on Russia remains an obstacle for some. When EU leaders meet later this week (27-28 June)...

To play a kingmaker role in key votes and have a say in debates in the European Parliament, members of the conservative ECR group, now the third-largest EU group in the European Parliament, must be constructive and compact, Ondřej Krutílek, the newly elected Czech MEP whose party is in the same EU group, told Euractiv Czechia in an interview.

Opinion polls published a week before France's snap legislative election on 30 June put candidates backed by the far-right Rassemblement National and its allies in the lead, but with the vote taking place two rounds, the outcome remains highly unpredictable.

Ensuring journalists' safety is crucial for democracy, as threats lead to self-censorship and under-reporting. Despite Europe being relatively safe, online threats are rising, particularly against women and minorities. New EU legislation aims to enhance protection and cooperation with online platforms.

The rise of populists in the former East Germany in the European elections is linked to growing opposition to support for Ukraine, German Chancellor Olaf Scholz admitted on Sunday, insisting there was no alternative to maintaining aid.

Italian Foreign Minister and Deputy Prime Minister Antonio Tajani, whose Forza Italia party is part of the European People's Party (EPP), has issued a warning to the conservatives: they should seek the support of the European Conservatives and Reformists (ECR) rather than the Greens.

Russia, the world's biggest nuclear power, could reduce the decision-making time stipulated in official policy for the use of nuclear weapons if Moscow believes that threats are increasing, parliament's defence committee chairman said.

Thousands of people turned out in France on Sunday (23 June) for feminist demonstrations against the far right, which is expected to come out on top in the 30 June snap elections, as parties sought to shore up support with days to go.