China and EU Revive Talks on Electric Vehicle Price Plan

China's negotiations with the EU over a minimum price plan for China-made electric vehicles have resumed. The EU had approved duties due to alleged subsidies. China seeks a minimum price agreement as an alternative. The outcome is critical for Chinese automakers facing domestic challenges.

China's commerce ministry announced that negotiations with the European Union regarding a minimum price plan for China-made electric vehicles have been reignited. The talks, which aim to prevent the imposition of steep duties over concerns of unfair subsidies, will continue into next week. China's stance discourages independent EU talks with manufacturers.

The EU had previously approved duties of up to 45.3%, following investigations into whether Chinese EV makers were benefiting from subsidies that might flood the European market. China argues its manufacturers compete effectively against European rivals and proposes a minimum price plan instead of tariffs. Analysts highlight the EU's importance for Chinese automakers, currently grappling with domestic price wars and deflation.

Commerce ministry spokesperson He Yadong expressed approval of the EU's commitment to discussions and a diplomatic resolution, noting recent talks have progressed without revealing specifics. Historically, the EU's minimum-price undertakings have applied to commodities, and doubts persist regarding its effectiveness on manufactured goods like vehicles.

(With inputs from agencies.)