China's President Xi Jinping extended his congratulations to the incoming European Council President, Antonio Costa, on Thursday, just before new European Commission tariffs on Chinese electric vehicles (EVs) are set to take effect.

The European Commission plans to implement provisional import tariffs of up to 37.6% on Chinese-made EVs, following accusations that China provides significant state subsidies to its manufacturers.

President Xi emphasized the importance of developing China-EU relations, as Europe prepares for potential retaliatory measures from Beijing, which could escalate the ongoing tariff war between the West and China's $18.6 trillion economy.

The EU's trade policy has become increasingly protective due to concerns that China's production-focused model might flood Europe with cheap goods, especially as Chinese firms boost exports in response to weak domestic demand.

China and the European Commission have been negotiating since last week to address the curbs that both Beijing and some European automakers want lifted. Beijing denies claims that Chinese EVs benefit from unfair subsidies.

Xi reiterated China's commitment to a comprehensive strategic partnership with the EU, stating that Europe is viewed as a significant player in the multipolar world order.

Costa, a former Portuguese prime minister, will now face the challenge of uniting the Council's 27 member states, who are divided on whether to support the Commission's EV tariffs in an upcoming advisory vote. Germany, where automakers rely heavily on Chinese sales, opposes the tariffs, while France is a strong supporter.

In response, China has initiated an anti-dumping investigation into European brandy imports, most of which come from France. Additionally, Beijing is examining imports of European pork and by-products, a move seen as an attempt to pressure Spain, the Netherlands, and Denmark to oppose the Commission's curbs.

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