South China Morning Post
China, EU reach framework agreement in EV tariff dispute
Mon, 12 Jan 2026 14:13:04 GMT
Beijing and Brussels on Monday announced a milestone in resolving their years-long trade dispute over Chinese electric vehicles , with the European Union releasing guidance set to address the countervailing tariffs it levied in 2024.
The European Commission issued a document outlining how Chinese exporters can submit price undertaking offers, which it said must be “adequate to eliminate the injurious effects of the subsidies and provide equivalent effect to duties”. It added that it would amend its existing regulations if it accepts such offers.
To strengthen proposals, the commission encouraged exporters to include commitments such as annual shipment volumes and planned future investments in the EU. Each assessment, it added, would be conducted in an objective and fair manner, following the principle of non-discrimination and in accordance with World Trade Organization rules.
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The EV dispute has been a major thorn in China-EU trade ties in recent years. Brussels opened its anti-subsidy investigation in October 2023, and concluded it a year later by imposing countervailing duties ranging from 7.8 to 35.3 per cent over a five-year period.
In response, Beijing launched probes into European cognac, dairy products and pork.
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While the EU’s tariffs remain in place, they could be replaced with minimum import prices under the new scheme.
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