US EditionChina and the EU Agree on Steps to Resolve Their Dispute over EV Imports
The European Commission published guidance for Chinese electric vehicle makers to submit price offers that could lead to tariff removal, protecting 2.5 million EU jobs at risk.
- On Monday, China's Commerce Ministry said China and the European Union reached a deal on exports of Chinese-made electric vehicles, with the EU set to issue minimum-pricing guidelines for Chinese auto exporters.
- EU officials said the dispute stemmed from subsidy concerns as Chinese homegrown automakers use Beijing's government fleet orders, low-interest loans from state-owned banks, cheap land, tax breaks, and subsidized materials to undercut European car brands.
- Most imports into Europe were from Western automakers with factories in China, including Tesla and BMW, and the value of battery-powered cars imported to Europe rose from $1.6 billion in 2020 to $11.5 billion in 2023, while the U.S. imposed a 100% tariff in 2024.
- The deal leaves open the status of 2024 tariffs while noting climate goals, as it did not directly say if EU tariffs up to 35.3% will end despite the EU needing affordable EVs to meet its 55% 2030 emissions target.
- Broader implications include safeguarding a rules-based international trade order as China's commerce ministry said these steps support healthy China-EU economic and trade relations amid industry alarm in Europe and the United States.
45 Articles
45 Articles
EU, China Unveil Guidelines to Resolve Trade Dispute Over Beijing’s EV Subsidies
China and the European Union have agreed on a new measure to settle disputes over Beijing’s massive state aid to its electric vehicle (EV) makers. The European Commission (EC)—the EU’s executive arm—released a guideline document on Jan. 12 for EV exporters based in China on submitting price undertaking offers, which could replace the steep tariffs imposed in October 2024 by the EC. Each price undertaking offer “must be adequate to eliminate the …
China and the EU have agreed on minimum prices for Chinese electric vehicles imported into the European Union. In future, car manufacturers will have to submit applications to the EU Commission to clarify the prices with Brussels, as the EU Commission announced.
The rapid spread of Chinese electric cars is causing problems for manufacturers in Europe. China and the EU have been at odds over this for some time. Now, a compromise of sorts has apparently been reached – but questions remain. By J.-M. Magro.
At a time of global concern over Donald Trump's actions, the European Commission has taken a further step this Monday to resolve the dispute over cheap electric cars that China exports to the EU. What Brussels has done is to propose an alternative to manufacturers who want to dodge the tariffs imposed by the EU executive on these vehicles: a guide with a series of guidelines to accept the minimum price offers of the electric vehicle companies ba…
The EU and China could end their customs dispute with a salomonic compromise: Europeans offer Chinese exporters of electric cars the option of saving tariffs when setting price limits.
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