Beijing and London Talk EVs as Britain Weighs Tariff Path

China's commerce minister and the UK business secretary held a video call on November 11 to discuss electric vehicles, and neither side told the public what was actually said. For a conversation with a 45.3% tariff question hanging over it, that's a notably quiet readout.

Commerce Minister Wang Wentao spoke with Business Secretary Jonathan Reynolds at London's request, according to China's Ministry of Commerce. The brief statement, issued Thursday, said the two discussed economic and trade issues of mutual concern. It disclosed no positions on EVs, no tariff arrangements, no policy changes and no agreements.

What triggered the call?

Britain is weighing its trade policy toward Chinese EVs while trying to deepen industrial cooperation with the European Union. That's a narrow ledge to walk, and Beijing has already marked the drop.

On October 19, China's commerce ministry described Chinese-British auto industry cooperation as complementary, equal and mutually beneficial. It urged Britain to follow World Trade Organization rules and avoid copying the EU's restrictions on Chinese EVs. Beijing warned it would take firm countermeasures to protect Chinese industry's legitimate rights if Britain went ahead.

The EU has been applying pressure from the other direction. The Financial Times reported on September 25 that Brussels wants Britain to raise import tariffs on Chinese EVs, linking the treatment of British goods under its "Made in Europe" policy to trade policy alignment.

What do the EU tariffs actually add up to?

Britain declined to follow the EU in 2024. In October that year, the EU imposed definitive countervailing duties on Chinese-built battery electric vehicles for five years.

• Additional duties range from 7.8% to 35.3%
• The standard import tariff is 10%
• The maximum combined rate reaches 45.3%

That ceiling is nearly half the car's value at the border. The takeaway: Britain's decision is a choice between a 10% regime and something close to the EU wall.

Why Chinese automakers keep pushing into Britain

The trade uncertainty hasn't slowed Chinese brands. Geely Auto (HKEX: 0175) announced on October 19 that it had signed its hundredth UK retail outlet, less than a year after entering the market. Cumulative UK registrations passed 10,000 after 11 months on sale — roughly a thousand cars a month per year of presence.

Chery (HKEX: 9973) is expanding too. It plans to bring its iCar brand to Britain under the overseas name iCaur, with sales starting in early 2027, Bloomberg and Reuters reported on October 15.

How much do exports matter to China right now?

More than usual. New energy vehicle exports rose about 140% year-on-year to 606,000 units in October, the China Association of Automobile Manufacturers said on November 11. Domestic NEV sales fell 8.6% to 1.334 million over the same period.

Exports aren't a nice-to-have for China's automakers; they're the offset for a shrinking home market. In plain terms, roughly one in three NEVs China sold in October left the country.

Watch for Britain's tariff decision, any Chinese countermeasure announcement, and whether iCaur's early-2027 launch survives the policy weather between now and then.