Clear signs of de-escalation are emerging in the trade dispute over imports of Chinese electric vehicles into the EU. Beijing and Brussels have reported progress in talks on an alternative solution to the countervailing duties that have so far constrained Chinese EV exports to the bloc.
According to China’s Ministry of Commerce, consultations ongoing for several months have focused on a price undertaking mechanism that could replace part of the existing tariffs. Such a scheme would allow Chinese manufacturers to continue exporting electric vehicles to the EU, while addressing Brussels’ concerns over state subsidies.
On 12 January, the European Commission published guidelines setting out how Chinese exporters can submit offers for price undertakings. The document specifies the criteria the Commission will use to assess proposals, including the structure of sales channels, the risk of cross-compensation, and manufacturers’ plans for future investments within the EU.
A condition for effectiveness
The Commission stresses that price undertakings cannot be merely symbolic. Proposals submitted by exporters must genuinely neutralise the effects of subsidisation and deliver the same level of protection as the current duties. In practice, this means that prices offered on the EU market must effectively replace the function of countervailing tariffs.
Brussels also underlines that all offers will be assessed under the same conditions, with each application examined objectively and in line with World Trade Organisation rules.