EU and China Explore Minimum Prices for Chinese-made EVs

The European Union and China are considering setting minimum prices for Chinese electric vehicles instead of maintaining the high tariffs imposed last year. The negotiations aim to address trade imbalances and could potentially resolve the tariff dispute affecting both automotive and luxury goods industries.

The European Union and China are in preliminary talks to establish minimum prices for Chinese-manufactured electric vehicles, a move that could replace existing tariffs, according to a European Commission representative.

The discussions, confirmed by German news outlet Handelsblatt, involve EU trade commissioner Maros Sefcovic and Chinese Commerce Minister Wang Wentao. This dialogue aims to devise effective, enforceable pricing to mitigate the impact of subsidies, previously addressed by tariffs.

The negotiations also cover the broader context of international trade tensions, as seen with previous China-EU trade disputes, including China's tariffs on French cognac. Key stakeholders, like the German auto industry association VDA, advocate for a diplomatic resolution to alleviate tariffs and maintain trade partnerships.

(With inputs from agencies.)