The European Union issued on Monday a guidance document on a minimum pricing mechanism for Chinese electric vehicles in a move that China welcomed as a “soft landing” on the controversial EU tariffs on China-made battery EVs.
At the end of 2024, the European Commission received enough support from the EU member states to impose tariffs ranging from 7.8% to 35.3% on imports of electric vehicles from China due to unfair subsidizing.
The EU tariffs, in force since July 2024, have led to a reaction in China, which opened anti-dumping investigations of EU imports, targeting brandy and pork imports from the bloc, likely aimed at Spain, France, the Netherlands, and Denmark.
Now, following months of negotiations, the European Commission issued a Guidance Document on the submission of price undertaking offers on battery electric vehicles (BEVs) from China. The guidance “covers various aspects to be addressed in a possible undertaking offer, including the minimum import price, sales channels, cross-compensation, and future investments in the
EU,” the Commission said.
In the guidance, “the EU acknowledges that it will assess each price undertaking offer against the same legal criteria in an objective and fair manner, following the principle of non-discrimination and in accordance with relevant WTO rules,” China’s Commerce Ministry said on Monday.
The progress on the issue “shows that both China and the EU have the ability and willingness to properly resolve differences through dialogue and consultation under the framework of WTO rules and maintain the stability of automotive industrial and supply chains” globally, China added.
The China Chamber of Commerce to the European Union (CCCEU) praised “the positive outcome achieved through dialogue and consultations between China and the European Union, which has enabled a soft landing in the electric vehicle case.”
China has extended its global lead in EV sales as both the EU and the U.S. have recently backed away from previous pledges, reducing competitive pressure on Chinese vehicles.
By Tsvetana Paraskova for Oilprice.com
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