China and EU Reach Agreement on EV Talks: "EU to Set Price Undertaking Guidelines"

"Assessment to Be Conducted in an Objective and Fair Manner"

China and the European Union (EU) have reached a compromise regarding the ongoing dispute over exports of Chinese electric vehicles. Under the new arrangement, Chinese companies will submit price undertaking applications when exporting electric vehicles to the EU, and the EU will evaluate these applications.

At the Brussels Motor Show 2026 held in Brussels, Belgium on the 9th, Chinese electric vehicle manufacturer BYD showcased its products. Photo by Yonhap News

On January 12, the Chinese Ministry of Commerce announced on its website the progress of negotiations between China and the EU on electric vehicles, stating, "Both sides have agreed on the need to provide general guidelines regarding price undertakings for Chinese exporters of pure electric vehicles to the EU."

The Ministry of Commerce added, "To this end, the EU will issue a 'Guidance Document on the Submission of Price Undertaking Applications.' In this document, the EU will confirm that it will adhere to the principle of non-discrimination, apply the same legal standards to each price undertaking application in accordance with relevant World Trade Organization (WTO) regulations, and conduct evaluations in an objective and fair manner."

Previously, the two sides had been at odds after the EU imposed tariffs on Chinese electric vehicles and China retaliated with countermeasures. Rather than imposing tariffs on Chinese electric vehicle manufacturers, the two parties have been negotiating a price undertaking agreement that would set a minimum price threshold below which vehicles cannot be sold.