- Both sides agreed it is necessary to provide general guidance on price undertakings for Chinese exporters shipping passenger BEVs to the EU.
- This will contribute to the healthy development of China-EU economic and trade relations and uphold the rules-based international trade order, a statement said.
China and the European Union have reached an agreement on price undertakings regarding Chinese electric vehicle (EV) exports to the bloc, marking a significant step forward in replacing additional tariffs.
Both sides agree that it is necessary to provide general guidance on price undertakings for Chinese exporters of passenger battery electric vehicles (BEVs) to the EU, enabling them to address concerns in a more pragmatic, targeted, and WTO-compliant manner, according to a statement released Monday by China's Ministry of Commerce.
The EU will issue a Guidance Document on Submission of Price Undertaking Offers, in which it will assess each price undertaking offer against the same legal criteria following the principle of non-discrimination and in accordance with WTO rules.
The progress reflects the spirit of dialogue and the outcomes of consultations between China and the EU, demonstrating that both sides possess the capability and willingness to properly resolve differences through dialogue and consultation within the WTO framework, the statement said.
This is conducive to the healthy development of China-EU economic and trade relations and upholding the rules-based international trade order, the statement noted.
On October 4, 2023, the European Commission formally launched an anti-subsidy investigation into imported BEVs originating from China, alleging they benefit from unfair Chinese subsidies that are distorting the European market.
In October 2025, after concluding the anti-subsidy investigation, the European Commission decided to proceed with imposing additional tariffs for a period of five years. Meanwhile, discussions regarding price undertakings continued.
These tariffs are imposed on top of the original 10% rate, with different EV manufacturers facing varying rates. For instance, Tesla (NASDAQ: TSLA) faces 7.8%, BYD faces 17.0%, while Nio (NYSE: NIO) and Xpeng both face 20.7%.
The China Chamber of Commerce to the European Union (CCCEU) welcomed the consensus as a "soft landing" in the EV case, saying that "this constructive outcome will significantly boost market confidence."
This would also create a more stable and predictable environment for Chinese EV and related industrial chain enterprises investing and operating in Europe, while helping to deepen cooperation between China and Europe in areas such as market expansion and technological innovation, the CCCEU said Monday.
The CCCEU reiterated that the competitiveness of China's EV industry stems from technological innovation and the cost and scale advantages achieved through rigorous market competition, rather than by subsidies.
