China and the EU resume talks on electric vehicles.

VTV.vn - The Chinese Ministry of Commerce announced that it has resumed negotiations with the European Union (EU) on a plan to establish a minimum price for electric vehicles manufactured in China.

China and the EU resume talks on electric vehicles.

China's Ministry of Commerce said negotiations have been underway in recent days and will continue next week, but provided no further details. Beijing welcomed the talks and urged Brussels not to negotiate separately with manufacturers. Previously, the EU imposed anti-subsidy tariffs of up to 45.3% last October, following allegations that Chinese electric vehicle manufacturers received unfair subsidies leading to oversupply in Europe.

In response, China asserted that its businesses were simply becoming more competitive and urged the EU to accept a minimum price agreement instead of imposing tariffs. According to experts, Europe is a crucial market for Chinese electric vehicle manufacturers, which are facing pressure from declining profit margins domestically due to price competition and deflation.

Previously, according to information published in the European Union (EU) gazette, the European Commission (EC) conducted a review of the countervailing duties applied to Volkswagen electric vehicles manufactured in China. This move could pave the way for replacing the tariffs with a minimum price commitment.

The EC stated that it had received a commitment proposal from VW Anhui (Volkswagen's joint venture in Anhui, China). The agency will conduct a review to assess whether the proposal is realistic and acceptable.

Seat's all-electric Tavascan SUV – a subsidiary of Volkswagen in Spain – is now manufactured in China for export under the Seat and Cupra brands. Volkswagen's Anhui plant is a joint venture with China's JAC Automotive Group, in which the German automaker holds a majority stake.

The EC officially imposed tariffs on electric vehicles manufactured in China in October 2024. Accordingly, vehicles exported from Volkswagen's Anhui plant were subject to a 20.7% tariff. Seat and Cupra had previously stated that this tariff posed a serious threat to the development of their brands.

In April, the EC stated that it had agreed with China to consider establishing a minimum price for electric vehicles manufactured in China as an alternative to tariffs. However, the agency stressed that any minimum price introduced must ensure equivalent effectiveness and enforceability to the tariff measure.

Source: https://vtv.vn/trung-quoc-eu-noi-lai-dam-phan-ve-xe-dien-100251212075800006.htm