China Eases Position on Individual EV Maker Negotiations with the EU
China’s commerce ministry shifted its stance on Thursday by accepting that Chinese electric vehicle makers can negotiate independently with the European Union, after Volkswagen secured a tariff reprieve for one of its China-made SUV models.
The European Commission, which oversees trade policy for the 27-strong bloc, this week approved a request by the German auto giant’s Cupra brand to exempt the Tavascan SUV coupe from import tariffs in exchange for an agreed minimum price and a sales quota – the first exemption since the duties’ adoption in 2024.
Beijing reopened negotiations with Brussels last December and urged the bloc not to engage in separate talks with Chinese manufacturers, despite EU rules allowing automakers to apply for tariff exemptions on specific China-made electric models.
“It is hoped that more Chinese companies will reach agreements with the European side on price commitments,” He Yadong, a commerce ministry spokesperson, told a regular news conference.
China is willing to maintain communication with the EU and “both sides support Chinese EV makers to make good use of price undertakings,” he added.
Analysts welcomed the Volkswagen deal, but noted that approvals for other automakers would likely take time as they appear to be handled on a model-by-model basis.
The all-electric Tavascan had been subject to an extra 20.7% tariff, on top of an existing 10% levy.
Reporting by Joe Cash. Editing by Muralikumar Anantharaman and Mark Potter
This article was first reported by Reuters
