The European Union has opened the door to a negotiated settlement in its escalating trade dispute with China over electric vehicles, offering Chinese manufacturers an alternative to the steep tariffs imposed on their exports.
In a policy document released on Monday, the European Commission said Chinese electric vehicle makers could propose “price undertakings” — commitments to sell their cars in the EU above a set minimum price — as a way to neutralize the impact of state subsidies.
If accepted, the arrangement would replace the existing import duties.
Last year, the EU imposed tariffs of up to 35.3 per cent on Chinese-made electric vehicles following an anti-subsidy investigation, which concluded that Beijing’s support for its EV industry unfairly undercut European manufacturers.
However, the Commission stressed that any pricing proposal must sufficiently address the harm caused by the subsidies and deliver results comparable to the tariffs currently in place.
EU trade spokesman Olof Gill said the document was designed to guide Chinese exporters interested in submitting price commitments for vehicles presently subject to countervailing duties.
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China reacted positively to the move, describing it as a sign of constructive engagement. In a statement, the Chinese Ministry of Commerce said the development reflected “the spirit of dialogue” between both sides and would help protect the stability of China–EU trade relations as well as the global rules-based trading system.
The Chinese Chamber of Commerce to the EU also welcomed the initiative, praising the outcome of negotiations and consultations.
It said the approach had created the conditions for a “soft landing” in the electric vehicle dispute.
The latest development suggests both sides may be seeking to ease tensions while preserving their respective industrial interests.