Beijing (Brussels Morning Newspaper) – China’s commerce ministry announced on Thursday that talks with the European Union regarding a minimum price scheme for China-made electric vehicles have resumed and will extend into next week, while also urging the EU not to engage directly with manufacturers.
In October 2024, the European Union authorised duties of up to 45.3% following an investigation by the European Commission into whether China’s EV manufacturers were receiving unfair subsidies, potentially causing a supply surplus in Europe.
Why are China and the EU revisiting EV price talks?
China maintains that its manufacturers are inherently more competitive than those in Europe, and Beijing has been pressuring Brussels to adopt a minimum price scheme instead of tariffs.
“China welcomes the EU’s renewed commitment to restarting price undertaking negotiations and appreciates its return to the path of resolving differences through dialogue,”
said He Yadong, a commerce ministry spokesperson, at a regular news conference.
He mentioned that the event occurred in recent days and is expected to continue into next week, without providing additional details.
Previous EU minimum-price arrangements, or price undertakings, were limited to homogeneous commodities and did not cover complex manufactured goods like automobiles. The commission has stated that a single minimum price would likely be insufficient to address the harm caused by subsidies.
How much progress have technical teams achieved so far?
In November of the previous year, Chinese and EU teams agreed on a “technical consensus” during EV discussions, following detailed talks about the price commitment plan for China-made EVs.
The report was released amid claims from certain Western media outlets that China and the EU have made little headway in negotiations over price commitments as an alternative to tariffs, reducing the likelihood of reaching an agreement. They also suggested that China has yet to present a proposal that meets European expectations.
Chinese and EU technical teams conducted five rounds of discussions in Beijing from November 2 to 7, focusing on the details of the price commitment plan proposed by the China Chamber of Commerce for Import and Export of Machinery and Electronic Products.
The “consensus on the price pledge framework” signified that both parties agreed on the overall structure, demonstrating their willingness to focus their resources on negotiating core interests and moving toward a common goal.
