UPDATE 1-China softens stance on EV makers negotiating with EU individually

Beijing reopened negotiations with Brussels last December and ⁠urged ​the bloc not ⁠to engage in separate talks with Chinese manufacturers, despite EU rules allowing automakers to apply ⁠for tariff exemptions on specific China-made electric models. "It is hoped that more Chinese ​companies will reach agreements with the European side on price commitments," He Yadong, ⁠a commerce ministry spokesperson, told a regular news conference.

China's commerce ​ministry shifted its stance on ‌Thursday by ​accepting that Chinese electric vehicle makers can negotiate independently with the European Union, after Volkswagen secured ‌a tariff reprieve for one of its China-made SUV models.

The European Commission, which oversees trade policy for the 27-strong bloc, this week approved a request by the ‌German auto giant's Cupra brand to exempt the Tavascan SUV coupe ‌from import tariffs in exchange for an agreed minimum price and a sales quota - the first exemption since the duties' adoption in 2024. Beijing reopened negotiations with Brussels last December and ⁠urged ​the bloc not ⁠to engage in separate talks with Chinese manufacturers, despite EU rules allowing automakers to apply ⁠for tariff exemptions on specific China-made electric models.

"It is hoped that more Chinese ​companies will reach agreements with the European side on price commitments," He Yadong, ⁠a commerce ministry spokesperson, told a regular news conference. China is willing to maintain communication ⁠with ​the EU and "both sides support Chinese EV makers to make good use of price undertakings," he added.

Analysts welcomed the Volkswagen deal, but noted that ⁠approvals for other automakers would likely take time as they appear to be ⁠handled on ⁠a model-by-model basis. The all-electric Tavascan had been subject to an extra 20.7% tariff, on top of an existing ‌10% levy.