Spanish PM urges EU to 'reconsider' heavy tariffs on Chinese electric cars

Spain's Prime Minister Pedro Sanchez said on Wednesday the European Union should "reconsider" a plan to impose tariffs of up to 36 percent on Chinese electric cars.

The European Commission, which oversees the bloc's trade policy, announced last month that it planned to levy five-year import duties of up to 36 percent on electric vehicles imported from China.

The following day, Beijing said it would launch a probe into EU subsidies of some dairy products exported to China.

"I have to be blunt and frank with you that we need to reconsider all of us, not only member states but also the Commission, our decision towards this," Sanchez told journalists in the economic powerhouse city of Shanghai. Sanchez is in China on an official visit.

"As I said before, we don't need another war, in this case a trade war," he added.

"I think that we need to build bridges between the European Union and China and from Spain.

"What we'll do is to be constructive, and to try to find a solution, a compromise between China and the European Commission."

Chinese subsidies

Sanchez's visit has seen him meet top officials including President Xi Jinping and call for "dialogue and cooperation" with the world's second-largest economy.

The trip comes amid mounting trade tensions between the European Union and China, primarily over Beijing's subsidies for its electric vehicle sector.

In June, China launched an anti-dumping investigation into pork imports from the bloc in response to an application submitted by a local trade grouping on behalf of domestic producers.

The Iberian nation is the European Union's largest exporter of pork products to China, selling more than 560,000 tonnes last year totalling 1.2 billion euros ($1.3 billion), according to industry body Interporc.