China and EU Near Resolution on Electric Vehicle Trade Dispute

China and the EU are working towards resolving their electric vehicle trade dispute. China will provide pricing guidelines, though the end of tariffs is uncertain. The EU needs affordable EVs to meet emission targets, despite concerns of Chinese market domination due to subsidies.

China and the European Union announced progress on resolving their trade dispute regarding electric vehicle imports. The Chinese Ministry of Commerce revealed that the EU plans to issue minimum pricing guidelines for Chinese auto exporters, though it remains unclear if the deal will end the tariffs due in 2024.

The guidance document released by the EU outlines pricing instructions for EV manufacturers, including minimum import prices to mitigate the impact of subsidies. The European Commission pledged fair and non-discriminatory offer assessments in accordance with World Trade Organisation protocols.

Despite concerns over market competition fueled by Chinese automakers benefitting from government subsidies, the EU recognizes the need for affordable EV imports to meet its 2030 emission goals. As Chinese brands gain market share, their presence in Europe is expected to grow significantly by 2030.