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The European Union (EU) has offered China an alternative to punitive tariffs amid an escalating trade dispute over high duties imposed on Chinese-made electric vehicles.
In a policy document released on Monday, the European Commission, which oversees EU trade policy, explained that Chinese electric vehicle manufacturers could submit price undertakings.
These undertakings would set minimum import prices designed to neutralise the impact of state subsidies, serving as a substitute for tariffs.
Last year, the EU imposed duties of up to 35.3 per cent on electric vehicles imported from China after an anti-subsidy investigation found that government support gave Chinese manufacturers an unfair advantage over European carmakers.
The Commission stressed that any price undertaking must fully address the harmful effects of the subsidies and deliver results equivalent to those achieved through tariffs.
EU trade spokesperson Olof Gill said the document aims to guide Chinese exporters considering such offers for electric vehicles currently subject to countervailing duties.
China’s Ministry of Commerce welcomed the move, describing it as evidence of constructive dialogue and successful consultations between both sides.
The ministry said the development would support healthy China–EU economic and trade relations while protecting the rules-based international trading system.
Similarly, the Chinese Chamber of Commerce to the EU praised the outcome, saying dialogue had enabled a “soft landing” in the electric vehicle dispute.
