The EU is urged by China to abandon proposed higher tariffs and adhere to WTO regulations, according to media reports.

• The European Commission should abandon its tariff decision by July 4 and comply with WTO rules, according to Global Times, citing sources.
• The EU and China have agreed to initiate talks regarding the EU's probe into Chinese electric vehicles' subsidies.
• The EU's provisional tariffs of up to 38.1% on Chinese EV imports will become effective on July 4th.

The European Union has agreed to hold new talks with China after both sides agreed to revoke the provisional tariffs on Chinese electric vehicles, according to a report by Global Times on Sunday.

Beijing announced on Saturday that China's commerce minister Wang Wentao and Valdis Dombrovskis, executive vice president of the European Commission, have agreed to commence talks on the EU's anti-subsidy investigation into Chinese EVs.

The European Commission should revoke its tariff decision by July 4 and comply with World Trade Organization rules, according to China's desire, as reported by the Global Times, citing observers.

If discussions with Chinese authorities do not result in a resolution, the EU's provisional duties of up to 38.1% on Chinese EV imports will kick in on July 4.

In addition to the existing 10% duty on imported electric vehicles, there is an additional charge.

The report stated that observers believe that the decision to scrap the tariff on Chinese EVs would benefit both sides, as the economic and trade cooperation between China and the EU is "huge" and both sides are dependent on each other.

Experts warned that the EU's actions may prompt China to respond with countermeasures, resulting in a loss for both sides unless the issue is resolved.

The EU's investigation into Chinese electric vehicles was deemed overly selective and not credible by a Chinese official, who stated this last week. Meanwhile, China has strongly condemned the tariffs, calling them "protectionist" and potentially in violation of WTO rules, as its commerce ministry announced on June 14.

Read the full report on Global Times.