(Jan 12): The European Union offered a glimpse of a framework that would see Chinese automakers escape hefty import tariffs on their electric vehicles in favour of a minimum price mechanism.
The European Commission on Monday (Jan 12) released general guidance for Chinese exporters of battery EVs on the submission of price undertaking offers. Submissions must be “adequate to eliminate the injurious effects of the subsidies and provide equivalent effect to duties,” it said in a document published on its website.
They must also include details of the minimum import price, sales channels, cross-compensation and future investments in the EU, it said.
China’s Chamber of Commerce to the EU said the move is a positive outcome that has enabled a “soft landing” in the EV tariff case. It’s expected to boost market confidence and provide a more stable and predictable environment for Chinese manufacturers and suppliers operating in Europe, the group said in a post on X.
The bloc had imposed hefty tariffs on EVs imported from China in 2024 after an investigation found manufacturers gained an unfair advantage from subsidies received at home. While the move was designed to protect Europe’s domestic brands, Beijing’s retaliation targeted European sectors like dairy, pork and brandy.
China’s Ministry of Commerce said Monday that Beijing and Brussels had carried out multiple rounds of negotiations and agreed that there’s a need for the EU to provide guidance to Chinese EV exporters.
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