**Brussels**: Chinese Commerce Minister Wang Wentao and European Commissioner Maros Sefcovic engage in talks to establish a minimum pricing framework for EVs. This move aims to ease trade tensions with the US while supporting the profitability of Chinese automakers and the EU’s electrification goals.
On April 8, discussions were held between Chinese Commerce Minister Wang Wentao and European Commissioner for Trade and Economic Security Maros Sefcovic, focusing on enhancing economic and trade cooperation in light of trade tensions with the United States. The negotiations marked the beginning of talks regarding a new pricing framework for electric vehicles (EVs) imported from China to the European Union. This initiative, announced by the Ministry of Commerce on April 10, aims to establish a minimum price for these vehicles, a shift from the previously imposed import tariffs.
Experts in the automotive market are suggesting that agreement on a minimum price would be more advantageous for Chinese car manufacturers compared to the imposition of tariffs. Zeng Zhiling, the automotive market director for Asia Pacific at consulting firm GlobalData, stated to Yicai that a negotiated minimum price allows both China and the EU to make concessions, facilitating smoother exports of Chinese EVs to Europe without the burden of sudden tariff increases. He remarked, “High tariffs squeeze automakers’ profits, while minimum prices benefit them by preserving their profit margins.”
The European Commission had previously imposed additional import tariffs on China-made EVs in October 2022, following a nine-month anti-subsidy investigation. This action resulted in significant tariff increments, including an additional 17 percent on vehicles produced by BYD, 18.8 percent on those from Geely Automobile, 35.3 percent for SAIC Motor’s vehicles, and 7.8 percent on Tesla’s China-manufactured EVs.
Cui Dongshu, secretary general of the China Passenger Car Association, supported the proposal for setting minimum prices, highlighting that such an arrangement would not only be beneficial for the profitability of Chinese automakers but would also contribute to the electrification of the EU automotive industry. Zeng also pointed out that resolving trade disputes swiftly could prevent an escalation of tensions, especially in the context of the U.S. “reciprocal tariffs.”
Data from Eurostat has revealed that China retained its position as the EU’s largest car importer by value for the third consecutive year in 2024, with Chinese passenger cars worth EUR12.7 billion (USD13.9 billion) entering the European market last year. Over the past six years, imports of Chinese vehicles into the EU have experienced an unprecedented surge, increasing by 1,591 percent.
The forthcoming negotiations on EV pricing commitments may mark a significant change in trade policies between China and the EU as both sides seek to enhance cooperation and address the shifting global automotive landscape.
Source: Noah Wire Services
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