Written by Cláudio Afonso | LinkedIn | X
The European Union and China have agreed to restart discussions over proposed price commitments related to Brussels’ anti-subsidy investigation into Chinese electric vehicle imports, marking the first signs of renewed dialogue since talks stalled late last year.
In addition to early entrants like BYD, Nio, XPeng, or Zeekr, which began selling fully electric models in Europe in recent years, a new wave of Chinese automakers is expanding into the region. These include Changan Group with its Avatr and Deepal brands, GAC’s Aion brand, and Chery Auto.
China’s Ministry of Commerce said Thursday that both sides have committed to promptly resuming negotiations aimed at fostering a more favorable environment for investment and industrial cooperation between Chinese and European firms.
The announcement came during a press briefing, where MOFCOM spokesperson He Yadong emphasized the importance of stabilizing supply chains and safeguarding the multilateral trading system.
“The two sides will establish regular ministerial-level communication, appoint dedicated contact points, and direct working-level teams to advance bilateral discussions and prepare for the next stage of high-level engagements,” He said.
The European Commission began imposing provisional countervailing duties on Chinese EV imports on October 31, 2024, following an anti-subsidy probe launched in 2023.
The tariffs, which add to the EU’s standard 10% import duty, range from 7.8% on Tesla’s Shanghai-built vehicles to as high as 35.3% on models from state-owned SAIC Motor, which owns the MG brand. BYD and Geely face rates of 17.0% and 18.8%, respectively.
In January, SAIC, BYD, and Geely challenged the measures before the Court of Justice of the European Union.
Last November, MOFCOM said both parties had engaged in “in-depth discussions” over a potential price commitment framework proposed by the EU, and had “made some progress.” However, the talks failed to advance in the following months.
Beijing has consistently criticized the tariffs, calling them discriminatory and politically motivated. In late 2024, China filed a formal complaint at the World Trade Organization, seeking to overturn the EU’s countervailing duties.
The Ministry of Commerce has also urged Brussels to “immediately correct its illegal practices” and to take steps to stabilize the EV supply chain and broader trade ties.
Tensions escalated further in October, when the EU rejected a Chinese proposal to set a minimum price of €30,000 ($32,400) for Chinese-made EVs sold in Europe. Brussels dismissed the plan, stating that the issue extends beyond pricing and must address the underlying subsidies that distort competition in the European single market.
