China–EU Consultations on the EU Anti-Subsidy Case - Concerning Chinese Electric Vehicles : Latest Developments

Background

In October 2024, the European Commission concluded its anti-subsidy investigation into Chinese BEVs and imposed definitive countervailing duties ranging from 7.8% to 35.3%. Since then, China and the EU have continued discussions in parallel, exploring WTO-compatible alternatives aimed at addressing the concerns identified in the investigation while maintaining dialogue and cooperation.

Key Developments

According to MOFCOM, the two sides have conducted multiple rounds of consultations in a spirit of mutual respect and constructive dialogue. A key outcome of these discussions is the shared recognition that Chinese exporters of BEVs to the EU should be provided with general guidance on price undertaking offers, enabling them to address the EU’s concerns in a more practical, targeted, and WTO-consistent manner.

In this context, the European Commission has issued a Guidance Document on the submission of price undertaking offers for Chinese BEV exporters. The document sets out the main elements to be addressed in such offers, including issues such as minimum import prices, sales channels, cross-compensation mechanisms, and future investments in the EU.

The Commission further confirmed that all price undertaking applications will be assessed on a non-discriminatory basis, applying the same legal standards, and following an objective and fair evaluation process, in line with WTO rules.

The China Chamber of Commerce to the European Union (CCCEU) welcomed the outcome of the consultations, describing it as a “soft landing” for the case and a positive signal to the business community. The CCCEU also reiterated that the competitiveness of China’s EV industry is driven primarily by technological innovation, economies of scale, and market-based competition, rather than subsidies.

Key Takeaways

• Price undertakings are now a clearly defined option:
The European Commission’s Guidance Document provides a structured and WTO-consistent framework for Chinese BEV exporters to submit price undertaking offers, but compliance requirements remain detailed and case-specific.
• Definitive duties remain in force:
The ongoing consultations do not suspend or remove the existing countervailing duties. Companies should continue to factor these duties into their EU market strategies while assessing alternative compliance pathways.
• Early legal and strategic planning is critical:
Exporters should proactively review pricing models, internal compliance controls, and EU-facing business structures to align with evolving trade remedy enforcement and reduce regulatory risk.