BEIJING, June 24 (Reuters) - Beijing wants the EU to

scrap plans to impose preliminary tariffs on Chinese electric

vehicle imports by July 4, China's state-controlled Global Times

reported, after both sides agreed to negotiate a possible

compromise.

Provisional European Union duties of up to 38.1% on imported

Chinese-made EVs are set to kick in by July 4 while the bloc

investigates what it says are excessive and unfair subsidies.

The European Commission said it would host technical talks

with Chinese officials in Brussels this week.

"The EU side has emphasised that any negotiated outcome of

the investigation must be effective in addressing the injurious

subsidisation," a Commission spokesperson said.

German Chancellor Olaf Scholz said there needed to be

"serious movement and progress" from China too.

China has repeatedly called on the EU to cancel its tariffs,

expressing a willingness to negotiate. Beijing does not want to

be embroiled in another tariff war, still stung by U.S. tariffs

on its goods imposed by the Trump administration, but says it

would take all steps to protect Chinese firms should one happen.

China's Global Times, citing observers, said the best

outcome would be for the EU to scrap its tariff plans before

July 4.

Analysts and European trade lobby groups stressed that China

would need to come to negotiations willing to make major

concessions.

Alicia Garcia Herrero, senior fellow at Bruegel, an

influential EU affairs think tank, doubted the planned curbs

could be dropped before elections in France on June 30 and July

7.

"The Commission can't change a decision it has been

pondering for months on months on months," she added. "Yes,

China is putting pressure on the member states, but they would

need to vote with a qualified majority against the Commission."

The European Commission is set to make a final decision on

tariffs by Nov. 2 at the end of the anti-subsidy investigation.

The Chinese commerce ministry did not immediately respond to

a Reuters request for comment.

TALKS ARE A 'GOOD SIGN'

Siegfried Russwurm, head of Germany's biggest industry

association BDI, said it was a "good sign" both sides would hold

talks.

"You know the old saying: as long as there are talks you're

not shooting at each other," he told German public broadcaster

Deutschlandfunk.

Russwurm, who also serves as chairman for German

conglomerate and car supplier Thyssenkrupp, said

tariffs were the last thing Germany needed as a major exporting

nation.

At the same time, Brussels' move to apply tariffs of varying

degrees suggested a thorough analysis had taken place and that

this was not an effort that targeted the entire Chinese car

sector in equal measure.

Meantime, Maximilian Butek, executive director at the German

Chamber of Commerce in China, said there was "zero chance" the

preliminary tariffs would be removed by July 4 unless China

eliminated all the issues flagged by the European Commission.

EU trade policy has turned increasingly protective over

concerns that China's production-focused development model could

see it flooded with cheap goods as Chinese firms look to step up

exports amid weak domestic demand.

China has rejected accusations of unfair subsidies or that

it has an overcapacity problem, saying the development of its EV

industry has been the result of advantages in technology, market

and industry supply chains.

"When European Commission President Von der Leyen announced

she would investigate China's new energy vehicles ... I had an

intuitive feeling it was not only an economic issue but also a

geopolitical issue," said Zhang Yansheng, chief research fellow

at the China Center for International Economic Exchanges.

ARMED AND READY

Although calling for talks, Beijing has also indicated it

has retaliatory measures ready if the EU does not back down, and

that it considers Brussels wholly responsible for the escalating

tensions.

China has opened an anti-dumping investigation into EU pork

imports. The Global Times said China was also teeing up an

anti-subsidy investigation into European dairy goods and tariffs

on large-engined petrol cars.

Chinese authorities have dropped hints about possible

retaliatory measures through state media commentaries and

interviews with industry figures.

"It seems probable that Beijing will raise tariffs up to 25%

for Europe-made cars with 2.5 or above litre engines," said

Jacob Gunter, lead analyst at Berlin-based China studies

institute MERICS.

"Pork and dairy are already on the table for Beijing, and

likely more agricultural products will be threatened," he added.

"On the EU side, there are a variety of ongoing

investigations ... so we should expect some sort of measures

targeting distortions on (Chinese) products ranging from medical

devices to airport security scanners to steel pipes."