27strong EU will vote on China EV tariffs in October
China deploys divideandconquer approach to win majority vote
Spanish Prime Minister unexpectedly urges EU to reconsider curbs
China commerce minister to meet EU trade chief soon
BEIJING, Sept 13 Reuters Beijing, as a vote on EU duties on Chinamade electric vehicles looms, employed a carrotandstick approach to deal with the 27strong bloc, threatening trade retaliation while cajoling key EU states into oneonone talks on deals and investments.
The potential blow of countertariffs on EU goods will fall mostly on states such as Spain, France and Italy that have voiced support for the EV duties, with pork, dairy and brandy exports to the world39;s secondbiggest economy at stake.
European Union members such as Germany, Finland and Sweden that have not pushed for the tariffs would feel less impact, with little exposure to the export items singled out by China.
China39;s tactics appear to be working.
Spanish Prime Minister Pedro Sanchez wrapped up a China visit this week by sitting in a Chinese EV and saying it was an honour. He then unexpectedly urged the EU to reconsider its position.
According to a Spanish government source, Sanchez39;s delegation came away feeling Spain is more important now, and that an agreement over tariffs on its pork products was close.
As a sweetener, a Chinese company agreed to build a 1 billion plant in Spain to make machinery used for hydrogen production, in apparent backing for Spain39;s…