Breakthrough in EU-China EV Anti-Subsidy Talks; EU to Issue Price Undertaking Guidelines

On January 12, China's Ministry of Commerce announced significant progress in consultations between China and the European Union regarding the anti-subsidy investigation into electric vehicles (EVs). The EU will issue "Guidance on Submitting Price Undertaking Applications," providing Chinese exporters with general, practical, and WTO-compliant operational instructions. The proposed price undertaking could include measures such as setting a minimum export price and limiting export volumes, serving as an alternative to high anti-subsidy tariffs and helping mitigate the impact on the EU’s domestic automotive industry. The EU launched its anti-subsidy investigation into Chinese-made EVs in October 2023 and imposed provisional anti-subsidy duties for a period of five years starting October 30, 2024. This recent breakthrough in negotiations is expected to offer Chinese companies a more flexible approach to address the situation.