EU Grants First Tariff Waiver for Chinese-Made Electric SUVs; Ministry of Commerce Backs Price Commitment Talks

On February 12, China's Ministry of Commerce responded to the European Union's approval of tariff exemption for the CUPRA Tavascan, a fully electric SUV produced by Volkswagen Group, stating that China supports Chinese automakers in engaging in case-by-case negotiations with the EU through price undertakings within the framework of the consensus reached between China and the EU. This model is the first individual case granted tariff exemption under the EU’s anti-subsidy investigation into Chinese electric vehicles and will be imported under a minimum price and quota arrangement. Ministry spokesperson He Yadong noted that both sides have achieved a "soft landing" in this case under WTO rules, and the EU has issued guidance documents clarifying the application process and the principle of non-discrimination regarding price undertakings. China hopes more companies will reach similar arrangements, promoting mutually beneficial cooperation between the Chinese and European automotive industries and jointly fostering an open and stable market environment.