China and the European Union have restarted negotiations over a minimum price plan for Chinese-made electric vehicles, Beijing’s commerce ministry said Thursday.
The investigation, announced by Commission President Ursula von der Leyen in September 2023, found that China’s EV value chain benefits from unfair subsidization that threatens economic injury to EU producers.
The European Commission concluded its anti-subsidy investigation in October 2024, imposing definitive countervailing duties on Chinese-made battery electric vehicles for five years.
Individual duty rates vary by manufacturer.
BYD faces a 17.0% countervailing duty, Geely 18.8%, and SAIC 35.3%.
Tesla, which requested an individual examination for vehicles produced at its Shanghai factory, was assigned a 7.8% rate.
Other cooperating companies — such as XPeng and Nio — face 20.7%, while non-cooperating companies are subject to the maximum 35.3%.
“China welcomes the EU’s renewed commitment to restarting price undertaking negotiations and appreciates its return to the path of resolving differences through dialogue,” said He Yadong, a commerce ministry spokesperson, at a press conference.
He Yadong said talks had taken place in recent days and would continue into next week, without providing further details. Beijing urged the bloc not to negotiate independently with individual manufacturers.
Combined with the EU’s standard 10% import duty on vehicles, Chinese EV makers face total tariffs of up to 45.3%.
Chinese Sales Surge
The renewed negotiations come as Chinese automakers continue gaining ground in Europe despite the punitive duties.
Chinese brands sold 509,700 vehicles in the first nine months of 2025, up 91% from 266,600 in the same period last year, according to Car Industry Analysis.
SAIC Motor, which owns the MG brand, led with 226,047 cars sold, a 21% increase year-over-year. Leapmotor, which has a partnership with Stellantis, saw sales surge by 8,600%.
BYD, Dongfeng, XPeng, and Chery — which owns the Jaecoo and Omoda brands — also posted significant gains.
European Footprint
The Guangzhou-based brand XPeng has recently signed an agreement with Magna Steyr to assemble its first-ever vehicles in Europe, bypassing tariffs.
BYD is also setting up production in Hungary, where it has its European headquarters.
The plant will start production next year with the Dolphin Surf (known in China as Seagull) as the debut model to be manufactured in the Hungarian plant.
Additionally, the Shenzhen-headquartered company is set to start production at its new plant in Turkey.
XPeng has recently opened its first R&D center in Europe, located in Munich.
It joins other Chinese companies, such as Nio and Xiaomi, which also have research and design centers in the German city.
Tech giant Xiaomi, which has launched its second model this summer in China, plans to arrive in Europe in 2027, as revealed by President Lu Weibing in August.
It remains unknown whether the company aims to produce locally in Europe.
Changan, which owns brands like AvatrDeepal, launched sales in Europe in late 2024, initially in Norway and Germany.
In early 2025, it expanded to the UK, Switzerland, Sweden, and Finland. The company sells its vehicles under the Deepal brand, including the S07 and S05 models.
By the year end, Changan aims to have entered at least 10 European markets, with the long-term goal of establishing a presence across the continent by 2028.
The company has two design centers in Europe — one in Turin, Italy, and another one in Munich, Germany.
Shanghai-based premium EV maker Nio has recently started deliveries of its cheaper and European-oriented brand, Firefly.
Deliveries have now begun in Norway, the Netherlands, Belgium and Greece with Portugal, Austria and several other markets following in the upcoming weeks and months.
Initially planned to focus on the European market, Nio has been forced to adjust its strategy due to the extra duties imposed a year ago.
Deliveries started in China last April and have surpassed 30,000 cumulative units last month, the management announced at the Guangzhou Auto Show.
