China Says Progress Made With EU on Electric Vehicle Price Talks

China’s commerce ministry said talks with the European Union on setting minimum prices for Chinese-made electric vehicles have “entered final stages,” although more work is required to reach a deal.

China's commerce ministry has announced that negotiations with the European Union (EU) on setting minimum prices for Chinese-made electric vehicles (EVs) have entered their final stages. Despite progress, more work is needed to finalize the agreement.

The talks are a response to the EU's imposition of steep tariffs on Chinese EV imports last year, alleging that state subsidies gave them an unfair advantage. The negotiations took a significant step forward when Chinese Commerce Minister Wang Wentao met with European Union Trade Commissioner Maros Sefcovic in France earlier this month [1].

The rapid growth of Chinese EV exports to the EU, capturing 25% of the market in 2024, has prompted regulatory action. In October 2023, the European Commission launched an anti-subsidy investigation into Chinese EVs, alleging excessive state support [3]. The investigation has sparked discussions about potential compromise solutions, including phased tariff implementations and voluntary export restraints.

The timing of these talks is influenced by several factors. The US has implemented aggressive tariff policies that affect both Chinese and European exporters to the American market, creating shared challenges. Additionally, economic slowdowns in both China and the EU have added urgency to resolving trade disputes [3].

The upcoming July 15-16, 2025 summit between President Xi Jinping and EU leadership in Brussels serves as a deadline for demonstrating progress on trade issues. The summit follows several lower-level engagements that produced limited tangible outcomes [3].

The March 2025 Beijing discussions marked a significant but limited step forward, with the establishment of four specialized working groups focused on market access, electric vehicles, and other key issues [3].

The progress in these talks is crucial for both economies. Resolving key trade disputes could boost bilateral trade by €68 billion annually and add 0.3 percentage points to Chinese GDP growth and 0.2 points to EU growth over the next three years [3].

References:
[1] https://news.bloombergtax.com/international-trade/china-says-progress-made-with-eu-on-electric-vehicle-price-talks
[2] https://www.economist.com/china/2025/06/05/now-chinas-ultra-cheap-evs-are-scaring-china
[3] https://discoveryalert.com.au/news/china-eu-trade-key-issues-2025/