China and the EU agree on steps to resolve their dispute over EV imports
HONG KONG (AP) — China and the European Union said Monday they have agreed on steps to resolve the bloc’s disputes over imports of Chinese-made electric vehicles.
In the statement made by the Chinese Ministry of Commerce, it was stated that the EU will issue guidelines on minimum pricing for Chinese automobile exporters. It was not directly stated whether the agreement included an end to tariffs of up to 35.3 percent that the EU imposed on electric vehicle imports from China in 2024 after an investigation.
“This not only helps ensure the healthy development of China-EU economic and trade relations, but also helps maintain the rules-based international trade order,” the commerce ministry said in a statement.
A. “guidance document The EU issued “instructs EV manufacturers to make price quotations, including minimum import prices and other details.” It was stated that wide differences in vehicle types make it necessary to set specific minimum import prices “appropriate to eliminate the harmful effects of subsidy”.
The EU said the European Commission would evaluate each proposal objectively and fairly, “following the principle of non-discrimination” and in line with World Trade Organization rules.
The expansion of Chinese EV manufacturers abroad has alarmed automakers in Europe and the US. The EU has imposed tariffs against the influx of affordable Chinese EV models into its markets, saying Chinese automakers benefit from unfair government subsidies. USA introduced 100 percent tariff Chinese-made electric cars in 2024.
Value battery powered cars Imports to Europe jumped from $1.6 billion in 2020 to $11.5 billion in 2023. Most imports were from Western automakers. factories in chinato contain Tesla’s And bmw.
EU officials have complained that Chinese automakers are poised to increase market share by undercutting prices for European car brands, thanks to massive subsidies from Beijing. These include orders for government fleets, low-interest loans from state banks, access to cheap land for factories, tax breaks and subsidized raw materials and parts from state-owned industries.
US tariffs effectively block nearly all Chinese electric vehicle imports. The EU needs affordable electric cars from abroad to achieve its goal of reducing greenhouse gas emissions by 55% by 2030.
Chinese car brands are expanding into Europe despite high tariffs. According to the European Automobile Manufacturers Association (ACEA) and S&P Global Mobility, sales of cars produced in China in the EU increased from 5% in the same period of 2024 to 6% in the first half of 2025.
