China and EU Reach "Soft Landing" Agreement on EV Case; EU Chamber of Commerce in China Hails Deal

On January 12, the China Chamber of Commerce to the European Union welcomed and strongly endorsed the "soft landing" achieved in the EU's electric vehicle (EV) investigation through dialogue and consultations between China and the EU. This outcome positively addresses concerns raised by the automotive industry and other stakeholders, helps stabilize China-EU economic, trade, and investment cooperation, and sends a clear signal that both sides are committed to resolving differences through consultation and upholding the multilateral trading system. The Chamber emphasized that the competitiveness of Chinese EVs stems from technological innovation and market mechanisms, not subsidies. This agreement will boost market confidence, create a more predictable operating environment for Chinese companies in Europe, and foster collaboration between the two sides on green transition and supply chain coordination. On the same day, China’s Ministry of Commerce announced that China and the EU have reached general guiding principles on price undertakings, and the EU will issue relevant documents to ensure that application assessments comply with WTO rules and are non-discriminatory and fair.