China and EU Reach "Soft Landing" Agreement on EV Anti-Subsidy Dispute

On January 13, the China Association of Automobile Manufacturers (CAAM) issued a statement saying that after multiple rounds of consultations, China and the European Union have achieved positive outcomes in the EU’s anti-subsidy investigation into Chinese electric vehicles (EVs), resulting in a “soft landing.” Both sides have resolved their differences through dialogue within the framework of World Trade Organization (WTO) rules, which helps safeguard the stability of China-EU economic and trade cooperation and bilateral relations. CAAM emphasized that the competitiveness of Chinese EVs stems from technological innovation and market competition, not subsidies. On the same day, China’s Ministry of Commerce revealed that China and the EU will provide general guidance on price undertakings for Chinese companies exporting battery electric vehicles to Europe. The EU will issue relevant guidelines specifying that applications for price undertakings submitted by companies will be reviewed based on non-discriminatory, objective, and fair principles, covering information such as export prices and sales channels.