China has announced that discussions with the European Union to set minimum prices for Chinese electric vehicles have entered their final phase, though further work is still needed to reach an agreement.
These negotiations are part of the trade tensions that arose from the EU’s imposition of high tariffs in 2023. Brussels justified these tariffs by citing state subsidies that, according to them, offer an unfair competitive advantage to Chinese automakers.
Crucial Meeting in France
According to China’s Ministry of Commerce, a “significant step in the right direction for a proper resolution” of the issue was made during a meeting this month in France between Chinese Commerce Minister Wang Wentao and EU Trade Commissioner Maroš Šefčovič.
The announcement adds that both sides have instructed their technical working groups to intensify efforts, aiming to find a solution consistent with each country’s legislation and the rules of the World Trade Organization (WTO).
China is attempting to avoid further trade measures that would harm its export strategy in the electric vehicle sector, as the European market is considered crucial. However, recent data indicates that China’s ambitious “opening” in Europe has already been curtailed, due to both tariffs and a slowdown in demand.
