China Says EU Talks on EV Minimum Price Plan Have Resumed

China’s commerce ministry confirmed Thursday that negotiations with the European Union over a minimum price plan for Chinese electric vehicles have restarted.

Why it matters: A successful deal could replace the EU’s 45.3% tariffs with price commitments, reshaping how Chinese EVs enter Europe.

The Details

• Talks resumed in recent days and will continue into next week, according to Reuters.
• Beijing urged the EU not to negotiate independently with individual manufacturers.
• China insists its EV makers are simply more competitive, not unfairly subsidized.
• The EU remains a vital market for Chinese automakers facing brutal price wars and deflation at home.

By the Numbers

• Current EU tariff: Up to 45.3% on Chinese EVs
• Tariff approval date: October 2024
• Standard EU import duty: 10% (tariffs are additional)
• EU member states: 27

What China Said

“China welcomes the EU’s renewed commitment to restarting price undertaking negotiations and appreciates its return to the path of resolving differences through dialogue,” said He Yadong, a commerce ministry spokesperson, at a regular news conference.

EVXL’s Take

These talks have been eight months in the making. When EVXL reported in April that EU and China had agreed to explore minimum pricing, negotiations were supposed to start “immediately.” Now they have finally restarted, but the fundamental challenge remains unchanged.

The EU has consistently said a single minimum price would not adequately counter subsidy-related injury. That skepticism has not softened. For Chinese automakers desperate to escape the domestic price war bloodbath, Europe represents critical margin relief. But Brussels holds the leverage, and these talks are far from a done deal.

Frequently Asked Questions

What is a minimum price plan?
A trade arrangement where exporters commit to selling above a set price floor instead of paying tariffs.

Why does the EU doubt this approach?
Previous minimum price deals covered simple commodities, not complex products like cars with varying features and specs.

When could a deal happen?
Unclear. Talks continue next week, but the EU has shown no urgency to finalize terms.