China and the European Union (EU) have reportedly reached a consensus on a pricing agreement for the export of battery electric vehicles (BEVs) from China to European markets. This agreement is said to be a general guide for Chinese BEV exporters and is believed to replace the implementation of anti-subsidy tariffs previously imposed by the EU.
The consensus emerged after the EU in 2024 imposed anti-subsidy tariffs on Chinese-made electric cars. The policy was issued following an investigation that assessed state support for China's BEV industry.
As a result, the EU imposed additional duties of up to 35.3 percent above the standard import tariff of 10 percent. As reported by Carnewschina, Tuesday, January 13. China rejected the policy.
In January 2026, the Chinese Ministry of Commerce issued a notice containing the development of China-EU consultations regarding the anti-subsidy case. The Chinese Ministry of Commerce stated that both parties reached a consensus based on the principle of mutual respect.
In the agreement, China and the EU agreed on the need for general guidance on price commitments for Chinese BEV exporters to the EU. With this scheme, Chinese exporters are said to be able to respond to EU concerns in a more measured manner, while remaining consistent with World Trade Organization (WTO) rules.
The European Union is also said to issue a Guidance Document for the Submission of Price Guarantee Offers. The document will serve as a reference for the European Commission in assessing each price guarantee offer with the same legal standard, carried out objectively and fairly, following the principle of non-discrimination, and in line with applicable WTO provisions.
However, the notice has not explicitly explained whether the anti-subsidy tariff of up to 35.3 percent will be completely revoked. On the other hand, the China Chamber of Commerce for Machinery and Electronic Products Import and Export (CCCME) revealed that the European Commission promised to conduct an objective review of the application submitted by Chinese companies.
CCCME said that companies that meet the criteria can use price guarantees in lieu of anti-subsidy duties. This means that the EU will set a minimum import price for each Chinese BEV manufacturer, so that the mechanism is considered softer than direct additional tariffs.
A number of analysts in the China Chamber of Commerce even called this step a soft landing in the anti-subsidy tariff dispute, because it gives room for price negotiations and reduces trade tensions that have been heating up since 2024.
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