China and EU agree on measures to resolve EV imports dispute

China and the European Union have agreed on steps to de-escalate their dispute over imports of Chinese-made electric vehicles (EVs).

The European Commission has issued guidance allowing Chinese manufacturers to propose minimum import prices as an alternative to anti-subsidy tariffs imposed in 2024.

“The European market is open to electric vehicles from all around the world, provided that they have come here according to that level playing field,” said European Commission spokesperson Olof Gill. “If those conditions are met, then we can look at price undertakings in a serious way.”

The EU said the European Commission would assess each offer in an “objective and fair manner, following the principle of non-discrimination” and in line with World Trade Organization rules.

“This is conducive not only to ensuring the healthy development of China-EU economic and trade relations, but also to safeguarding the rules-based international trade order,” a statement by China’s Commerce Ministry said. The China Chamber of Commerce to the EU welcomed the move, which it said would bring about a “soft landing” in the EV standoff.

Key developments:

• Tariffs of 7.8% to 35.3% on Chinese EVs remain in place pending review.

• The EU will assess price offers on an objective, non-discriminatory basis, consistent with World Trade Organization rules.

• Investment plans inside the EU may be considered in evaluations.

• China’s Ministry of Commerce welcomed the move as supportive of stable trade relations.

Analysts expect Chinese brands’ EU market share to rise from 6% in 2025 to about 10% by 2030.

ℹ️ AP News