The commission had imposed tariffs ranging from 7.8% to 35.3% on Chinese EV imports in October 2024 to counter what it called unfair subsidies. Beijing has since pushed for minimum prices to replace tariffs.
The move signals the EU’s shift toward cooperation as Chinese exports increase despite Western tariffs. Beijing, which approached the World Trade Organization over the duties in November 2024, now sees an opening.
The strategy to set price floors is “more practical, targeted and consistent with WTO rules,” China’s commerce ministry said on January 12. In November 2024, China had approached the World Trade Organization over the duties imposed.
The EU’s softer stance offers relief not only to Chinese carmakers like BYD, Xpeng, and Nio, but also for the likes of German brands BMW and Volkswagen, which have a large production capacity in China. Volkswagen made the first “meaningful offer” on a price undertaking in December, European commission spokesperson Olof Gill told The New York Times.