The EU proposes price undertakings as an alternative to tariffs for Chinese EV makers, aiming to resolve the subsidy dispute through dialogue.
BRUSSELS: The European Union has proposed an alternative to tariffs for China in their ongoing trade dispute over electric vehicles.
The European Commission outlined how Chinese EV makers can offer price undertakings to set minimum import prices, which would replace the current duties.
This guidance is intended for Chinese exporters considering offers for vehicles currently subject to countervailing duties, according to EU trade spokesman Olof Gill.
The EU imposed tariffs of up to 35.3% on Chinese EVs in 2024 after an anti-subsidy probe found state support undercut European automakers.
Any offer must be adequate to eliminate the injurious effects of subsidies and provide an equivalent effect to duties, the Commission document stated.
China’s commerce ministry welcomed the development, saying it reflects the spirit of dialogue from recent consultations.
“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,” the ministry added.
The Chinese Chamber of Commerce to the EU highly commended the positive outcome achieved through dialogue.
The move “has enabled a soft landing in the electric vehicle case,” the chamber said in a statement.
