EU Outlines Pricing Offers for Chinese EV Makers to Avoid CV Duties
The European Commission said this week that it's setting up a process by which Chinese electric vehicle exporters can agree to limit the number of EVs they ship to Europe and set minimum prices for those sales. The new limits and price “undertakings,” the result of discussions with China’s Ministry of Commerce, could lead to the removal of the EU’s countervailing duties on certain Chinese EVs (see 2506090007).
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A guidance document published by the EU “covers various aspects to be addressed in a possible undertaking offer, including the minimum import price, sales channels, cross-compensation, and future investments in the EU,” the commission said. The EU said it will evaluate each “undertaking offer” in an “objective and fair manner, following the principle of non-discrimination and in accordance with” World Trade Organization rules.
China’s Commerce Ministry applauded the guidance, saying it was necessary to help Chinese exporters “address their concerns” with the duties “in a more practical, targeted manner that complies with WTO rules.” The guidance “demonstrates the spirit of dialogue and the results of consultations between China and the EU,” the ministry said, according to an unofficial translation. "Both sides have the capability and the willingness to properly resolve differences through dialogue and consultation within the framework of WTO rules, and to maintain the stability of the automotive industry chain and supply chain in China, the EU, and globally."
Automakers that do limit the number of imported EVs and pledge price floors could be exempt from the anti-subsidy tariffs of up to 35% that the European Commission imposed in late 2024 on electric cars from China.
Chinese automakers that set minimum prices or take other steps outlined by the EU could avoid countervailing duties ranging from 7.8% to 35.3%, which were also announced in 2024 (see 2410290031). It’s unclear how long it would take for price undertaking offers to be approved.