China and EU Reach Agreement on Price Undertaking Guidance for Electric Vehicle Exports

China–EU Agreement Marks Progress in EV Trade Consultations

BEIJING — January 12, 2026 — China and the European Union (EU) have agreed on the need to provide general guidance on price undertakings for Chinese companies exporting battery electric vehicles (BEVs) to the EU, according to a statement from China’s Ministry of Commerce on Monday.

The move is designed to address concerns over the EU’s anti-subsidy investigation into Chinese EVs in a way that is “practical, targeted, and consistent with WTO rules.”

Consultations Based on Mutual Respect

The Ministry of Commerce said the agreement reflects the spirit of the China–EU Summit and results from multiple rounds of dialogue aimed at properly resolving the EV subsidy case.

The progress fully reflects the spirit of dialogue and the outcomes of consultations between China and the EU.

China’s Ministry of Commerce statement

According to the Ministry, both sides demonstrated their ability and willingness to resolve differences through discussion under the framework of WTO rules, while maintaining the stability of automotive industrial and supply chains in both regions.

European Commission Issues Guidance on Price Offers

The European Commission on Monday published official guidance on the submission of price undertaking offers, outlining elements that companies should include:

• Minimum import prices
• Sales channel structures
• Cross-compensation mechanisms
• Planned future investments in the EU

Each offer will be evaluated under uniform legal standards, with the Commission pledging to conduct assessments objectively, fairly, and without discrimination, in accordance with WTO principles.

Industry Response: Shared Confidence and Stability

The China Chamber of Commerce for Import and Export of Machinery and Electronic Products welcomed the agreement, describing it as a shared expectation across the EV value chain in both China and Europe.

The move will enhance the security and stability of related industrial and supply chains, safeguard overall China–EU economic and trade cooperation, and uphold the rules-based international trade order.

China Chamber of Commerce for Import and Export of Machinery and Electronic Products

Similarly, the China Chamber of Commerce to the European Union said it welcomes the progress made through dialogue, emphasizing that the outcome will boost market confidence, improve the investment environment for Chinese EV firms in Europe, and support deeper cooperation in technological innovation and green transition.

Maintaining Global Supply Chain Stability

The Ministry of Commerce added that this consensus benefits not only bilateral trade but also global industrial chain stability.

This is conducive to ensuring the healthy development of China–EU economic and trade relations and safeguarding the rules-based international trade order.

China’s Ministry of Commerce

By creating a cooperative framework for EV exports, both sides aim to strengthen the resilience of the global automotive supply chain and promote fair competition under transparent trade rules.

Source: People’s Daily Online https://en.people.cn/n3/2026/0113/c90000-20413264.html