‘Soft landing’: China, EU see progress in EV trade dispute with price floor option
Breakthrough follows duties levied by Brussels in October 2024 as part of investigation into industry subsidies
The European Commission issued a document outlining how Chinese exporters can submit price undertaking offers, which it said must be “adequate to eliminate the injurious effects of the subsidies and provide equivalent effect to duties”. It added that it would amend its existing regulations if it accepts such offers.
The EV dispute has been a major thorn in China-EU trade ties in recent years. Brussels opened its anti-subsidy investigation in October 2023, and concluded it a year later by imposing countervailing duties ranging from 7.8 to 35.3 per cent over a five-year period.
In response, Beijing launched probes into European cognac, dairy products and pork.
While the EU’s tariffs remain in place, they could be replaced with minimum import prices under the new scheme.