Just over a year ago, the European Union imposed punitive tariffs on Chinese electric vehicles. The reason was the EU’s position that Chinese EV manufacturers have an unfair advantage over the European automotive industry due to large state subsidies.
For some manufacturers, the tariffs reached as much as 35.3% of the vehicle’s value. China strongly criticized these measures, claiming that no such subsidies existed.
Ongoing Negotiations Between China and the EU
Since the introduction of the tariffs, China and the EU have been engaged in negotiations to resolve the dispute. As reported by ABC News, a compromise path forward has now been found.
In a new EU policy document, it is outlined how Chinese manufacturers could agree to specific pricing commitments, including setting minimum import prices as an alternative to high tariffs.
WTO Compliance and Investment Considerations
The EU emphasizes that any pricing agreement will be assessed objectively, fairly, and without discrimination, in accordance with World Trade Organization (WTO) rules, and that the investment plans of Chinese manufacturers within the European Union will also be taken into account.
China’s Ministry of Commerce welcomed this development in an official statement, saying that it strengthens economic relations and the rules-based international trading system.
This article originally appeared on Autorepublika.com and has been republished with permission by Guessing Headlights. AI-assisted translation was used, followed by human editing and review.