China and EU move closer to resolving electric vehicle import dispute

China and the European Union said they have agreed on steps to ease tensions over EU imports of Chinese-made electric vehicles.

The European Union issued a guidance document outlining how Chinese EV makers can submit price undertakings for battery electric vehicles.

The document sets out minimum import price requirements aimed at offsetting the impact of alleged subsidies.

The EU imposed tariffs of up to 35.3% on Chinese EV imports in 2024 following an anti-subsidy investigation.

European Commission spokesperson Olof Gill said the EU market remains open provided competition takes place on a level playing field.

If those conditions are met, then we can look at price undertakings in a serious way.

Olof Gill said.

The European Commission said it would assess pricing offers objectively, fairly and in line with World Trade Organization rules.

China’s Commerce Ministry said the move would support healthy China-EU trade relations and protect the global rules-based trade system.

Analysts said minimum pricing could allow Chinese brands to continue exporting while avoiding higher tariffs.

Chinese-made vehicles accounted for 6% of EU car sales in the first half of 2025, with market share expected to rise further.