EU and China Make Progress on EV Anti-Subsidy Case; EU to Issue Guidelines for Price Undertaking Applications

On January 12, the Ministry of Commerce reported that China and the European Union have made positive progress in consultations regarding the EU’s anti-subsidy investigation into Chinese electric vehicles (EVs). To implement the consensus reached by Chinese and EU leaders, both sides agreed to provide general guidance to Chinese exporters concerning price undertakings. The EU will issue a "Guidance Document on Submitting Price Undertaking Applications," clarifying that each application will be assessed based on WTO rules, under principles of non-discrimination, objectivity, and fairness. This move reflects both parties’ willingness to resolve differences through dialogue and will help stabilize the China-EU and global automotive supply chains. Previously, in October 2024, the EU decided to impose a five-year anti-subsidy duty on Chinese EVs. In January 2025, BYD, Geely, and SAIC filed lawsuits against this measure. Price undertaking negotiations resumed in April, entered their final phase in June, and are currently being actively advanced toward a solution consistent with both sides’ domestic laws and WTO rules.