China and the European Union have reached an agreement on resolving their dispute over EU imports of Chinese electric vehicles. The EU released a guidance document detailing minimum import prices for battery EVs. The EU’s anti-subsidy investigation led to tariffs of up to 35.3% on Chinese EV imports in 2024.

Minimum import prices must be set to remove the effects of subsidization, with consideration for Chinese EV manufacturers’ EU investments. European Commission spokesperson Olof Gill emphasized a level playing field for all electric vehicle imports. The European Commission will assess offers objectively and fairly.

China’s Commerce Ministry welcomed the agreement with the EU as beneficial for economic and trade relations. The China Chamber of Commerce to the EU praised the move as leading to a “soft landing” in the EV standoff. The EU’s anti-subsidy probe and tariffs on Chinese EVs had strained China-EU ties.

EU officials cited unfair subsidization of Chinese EV makers supported by the Chinese government as a threat to EU manufacturers. The EU opened a review into a price undertaking offer by Volkswagen’s Chinese joint venture. Analysts predict Chinese car brands will continue gaining market share in Europe.

European manufacturers heavily rely on Chinese-made batteries, rare earths materials, and computer chips. Balancing trade relationships with China is crucial. Analysts foresee Chinese automakers doubling their European market share to around 10% by 2030. Germany remains a significant producer of cars in the EU.

Read more at Yahoo Finance: China and EU agree on steps to resolve EV imports dispute