China and EU Reach Electric Vehicle Export Agreement

China and the EU have agreed on export terms for Chinese electric vehicles heading to Europe. The EU will provide guidelines on pricing, although it remains unclear if existing tariffs will be affected. The agreement comes amid concern about the impact of Chinese EVs, which have benefited from government subsidies, on Western markets.

China announced on Monday that it has secured a deal with the European Union regarding the export of Chinese-manufactured electric vehicles to European markets. The agreement, outlined by the Commerce Ministry in Beijing, indicates that the EU will issue guidelines on minimum pricing for these vehicles.

While officials did not directly confirm whether the deal addresses the current tariffs, which can reach up to 35.3 per cent, imposed by the EU on Chinese electric vehicle imports, the development signals a potential shift. These tariffs were enacted following a probe prompted by the perceived influx of inexpensive Chinese EVs, fueled by alleged government subsidies.

China's expansion into international markets has raised alarms among automakers in Europe and the United States. In 2024, the US also applied a significant tariff, marking a 100 per cent duty on China-made electric cars in response to similar concerns.

(With inputs from agencies.)