China and the European Union have reached an agreement on price undertakings for Chinese passenger battery electric vehicle exports, marking progress toward replacing additional tariffs. According to China’s Ministry of Commerce, the measure will offer general guidance to exporters, allowing them to address concerns in a pragmatic, targeted, and World Trade Organization–compliant manner.
The European Commission will issue a Guidance Document on Submission of Price Undertaking Offers. Each offer will be assessed against uniform legal criteria, adhering to the principle of non-discrimination and WTO rules.
Chinese authorities said the agreement reflects the spirit of dialogue and the outcomes of consultations between China and the EU. Both sides demonstrated their capability and willingness to resolve disputes through dialogue and consultation within the WTO framework. The consensus is expected to support the healthy development of China-EU economic and trade relations and uphold the rules-based international trade order.
On October 4, 2023, the European Commission formally launched an anti-subsidy investigation into imported battery electric vehicles from China, alleging that they benefit from unfair subsidies distorting the European market. Following the conclusion of that investigation in October 2025, additional tariffs were imposed for a period of five years.
The supplementary duties are applied on top of an existing 10 percent import tariff. Under the new measures, one manufacturer faces a 7.8 percent duty, while another is subject to 17 percent; additional producers are subject to a 20.7 percent surcharge.
The China Chamber of Commerce to the European Union characterized the agreement as a “soft landing” in the case. The chamber said the outcome will significantly boost market confidence and create a more stable, predictable environment for Chinese electric vehicle and related industrial chain enterprises operating in Europe. It affirmed that the competitiveness of China’s electric vehicle industry derives from technological innovation and cost and scale advantages, rather than from subsidies.
Source: CNEV Post
