China’s commerce ministry said on Thursday that discussions with the European Union over a possible minimum price mechanism for China-made electric vehicles have resumed and will continue into next week, signalling renewed diplomatic efforts to ease trade tensions following the EU’s decision to impose steep anti-subsidy duties earlier this year.
The European Union authorised tariffs of up to 45.3% in October 2024 after a European Commission investigation concluded that state support for Chinese EV manufacturers could lead to an oversupply in the European market. Beijing has maintained that its automotive sector is competitive due to technology and scale, not subsidies, and has pressed the EU to adopt a minimum price scheme as an alternative to punitive tariffs.
See also: China-EU Electric Vehicle Pricing Talks Reach Final Stage, But Further Work Needed
“China welcomes the EU’s renewed commitment to restarting price undertaking negotiations and appreciates its return to the path of resolving differences through dialogue,” commerce ministry spokesperson He Yadong said at a regular briefing. He confirmed the talks resumed “in recent days” and are expected to continue into next week, without elaborating further.
Beijing also urged the EU to avoid direct engagement with individual manufacturers, a sign of China’s preference for government-to-government negotiations rather than company-level consultations that could complicate the process.
See also: EU, China Reopen Talks on EV Tariffs, Consider Minimum Price Agreement
The European Commission has previously noted that minimum-price undertakings have only been used for standardised commodities and not for complex industrial products such as automobiles. Officials have argued that a single minimum price may not adequately address the competitive distortions identified in the subsidy probe.
Despite reports from some Western media outlets suggesting limited progress, Chinese officials pointed to earlier technical discussions as evidence of movement. In November, Chinese and EU technical teams held five rounds of talks in Beijing, from November 2 to 7, focusing on a price commitment framework proposed by the China Chamber of Commerce for Import and Export of Machinery and Electronic Products.
The teams reported reaching a “technical consensus” on the structure of a potential price pledge. Chinese officials said the agreement demonstrated that both parties were willing to concentrate their efforts on negotiating core interests and work toward a mutually acceptable solution, even as substantial differences remain.