The European Union Chamber of Commerce in China said it “highly welcomes and fully endorses” the outcome of negotiations between Brussels and Beijing over electric vehicle tariffs, calling it a “soft landing” that sends a positive signal to global markets.
The statement, released Monday, came shortly after the European Commission published guidance for Chinese automakers seeking alternatives to countervailing duties through price undertaking offers.
The Commission’s guidance document, published earlier on Monday, outlines criteria for Chinese automakers to submit price undertaking offers as an alternative to the duties.
Automakers must commit to minimum import prices, demonstrate simple sales channel structures, and may include pledges for EU investments to strengthen their applications.
The Chamber said on Monday that the “important outcome positively addresses the strong concerns of industries, including the automotive sector, and not only benefits the healthy and stable development of China-EU economic and trade cooperation, investment, and bilateral relations, but also sends a clear and strong signal to global markets.”
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 rates range from 7.8% for Tesla‘s Shanghai-produced vehicles to 35.3% for non-cooperating manufacturers, on top of the bloc’s standard 10% vehicle import tariff.
Combined with the bloc’s standard 10% vehicle import tariff, Chinese EV makers face levies of up to 45.3%.
Global Demonstration Effect
The Chamber emphasized the broader implications of the agreement between the world’s two largest trading blocs.
“As two major global economies, this joint decision by China and the EU carries not only significant bilateral implications but also a positive global demonstration effect, for which the Chamber expresses its high appreciation,” the statement said.
Market Confidence
The Chamber said resolving the dispute would “significantly boost market confidence” and benefit Chinese companies operating or planning to invest in Europe.
“Properly resolving the electric vehicle case will create a more stable and predictable environment for investment and operations in Europe by Chinese electric vehicle companies and related supply chain enterprises,” the statement said.
The group added that the outcome would “help deepen cooperation between the Chinese and EU electric vehicle industries in areas such as market expansion and technological innovation, injecting new momentum into the green transformation and industrial synergy development for China, the EU, and even the world.”
Subsidy Defense
The Chamber reiterated its position that Chinese EV competitiveness is not the result of unfair state support — a view that contrasts with the European Commission’s findings.
“The European Union Chamber of Commerce in China reiterates that the competitiveness of China’s electric vehicle industry stems from continuous technological innovation, as well as cost and scale advantages formed through full market competition, rather than reliance on subsidies,” the statement said.
Commission President Ursula von der Leyen announced the investigation in September 2023, claiming that China’s EV value chain benefits from unfair subsidization that threatens economic injury to EU producers.
Bridge Role
The Chamber said it would continue facilitating dialogue between Chinese and European businesses.
“The Chamber is willing to continue playing an active role as a bridge and link, and on the basis of this positive outcome, support Chinese and EU enterprises in carrying out higher-level, more constructive mutually beneficial and win-win cooperation, to promote the steady and long-term development of China-EU economic and trade and investment relations,” the statement said.
Ongoing Negotiations
China and the European Union restarted negotiations over a minimum price arrangement for Chinese-made EVs in mid-December.
“China welcomes the EU’s renewed commitment to restarting price undertaking negotiations and appreciates its return to the path of resolving differences through dialogue,” He Yadong, a spokesman for China’s commerce ministry, said at a press conference last month.
Beijing has urged Brussels not to negotiate independently with individual manufacturers, preferring a unified approach.
