(Yicai) Nov. 1 -- SAIC Group and Geely Holdings, the two auto giants hit with the European Union’s highest additional tariffs on Chinese electric vehicle imports, have refuted media reports that said they have held separate negotiations with the European Commission over EV price commitments.

The reports are unfounded, Shanghai-based SAIC said yesterday, adding that it has always been a major participant in the price commitment plan of the official Chinese negotiating body and has never had separate talks with the EC. SAIC also said it plans to take any necessary legal action, including filing a lawsuit with the EU Court to protect its legitimate rights.

Hangzhou-based Geely has been negotiating with the EC through the official body and has never been in direct communication with the EC, it said on the same day.

Their denials came after China’s commerce ministry reiterated on Oct. 28 that the China Chamber of Commerce for Import and Export of Machinery and Electronic Products, a state-backed industry group, is the only body authorized to negotiate tariffs with the EU.

Separate talks with Chinese carmakers on price commitments could undermine mutual trust and complicate the official talks, the ministry pointed out.

The EU cranked up tariffs on Chinese EV imports yesterday. The new tariffs -- ranging from 7.8 percent to 35.3 percent on top of the EU's standard 10 percent auto import duty -- will remain in place for five years. SAIC was hit with the steepest increase, while an extra 18.8 percent was slapped on Geely’s EVs.

SAIC along with Geely units Smart Automotive and Volvo Cars Asia Pacific Investment Holdings, have proposed separate price commitment plans, the EC said in its final report on a more than year-long anti-subsidy probe of Chinese EVs released on Oct. 29.

The EC did reach out to Geely’s brands during the discussions held in Brussels between the CCCME and the EC from late September to mid-October, the carmaker said, but Geely prioritized the broader situation and declined to engage in separate communication with the EC.

The EC's final decision did not objectively analyze the indicators of harm to the EU’s car industry, the CCCME said on Oct. 30. The chamber deemed the decision to be unfair and unreasonable and in severe violation of the World Trade Organization and EU anti-subsidy regulations.

The Chinese and European sides have conducted eight rounds of intense negotiations with input from 12 Chinese EV makers, but significant issues remain as they enter a new phase of talks.

Editor: Kim Taylor