Major progress has been made in the China-EU electric vehicle negotiations. On the 12th, China’s Ministry of Commerce announced that both sides had reached an important consensus: Chinese electric vehicle exporters will submit minimum price undertaking letters, while the European side will publish a 'Guidance Document on Submitting Price Undertaking Applications', clarifying applicable standards. This signifies a breakthrough in negotiations that have lasted over a year, and raises hopes that the high tariffs imposed by Europe on imported Chinese electric vehicles may be relaxed.
China’s Ministry of Commerce stated on the 12th that both sides agree on the necessity of providing general guidance on price undertakings to Chinese exporters shipping pure electric vehicles to the European market, so that Chinese car manufacturers can resolve related issues in ways that comply with World Trade Organization (WTO) rules. On the same day, the China Chamber of Commerce for Import and Export of Machinery and Electronic Products issued a statement noting that the consultations had yielded 'positive results', which will help restore stability to the relevant industrial chain.
The 'Price Undertaking Guidance Document' to be published by the European side provides a solution for the China-EU electric vehicle dispute and also reflects warming China-EU relations. In recent years, China and the EU have experienced friction over electric vehicles, key raw materials, and agricultural products. Despite obvious differences, both sides have emphasized their willingness to resolve issues through dialogue under WTO rules, highlighting a mutual desire to avoid escalation.
Looking at the trend, the EU finds the cost-performance ratio of Chinese electric vehicles hard to resist, while Chinese companies also need to maintain their export volumes and brand presence in the European market. In November last year, Chinese electric vehicles reached a record-high 12.8% market share in Europe, showing that even in the face of EU tariffs, Chinese car manufacturers continue to expand their local influence.