The EU will issue guidelines on minimum prices for Chinese car exporters.

China and the European Union (EU) announced on January 12th that they had reached an agreement on steps to resolve a long-standing trade dispute concerning the import of electric vehicles (EVs) manufactured in China into the European single market.

According to a statement from the Chinese Ministry of Commerce, the EU will issue guidelines on minimum prices for Chinese car exporters. China believes this move is not only beneficial for the healthy development of bilateral economic and trade relations, but also contributes to protecting the rules-based international trade order.

On the European side, the bloc has published guidance documents for EV manufacturers on submitting price proposals, including minimum import prices and other details. The EU stated that the European Commission (EC) will assess each proposal objectively and fairly, adhering to the principle of non-discrimination and in accordance with the rules of the World Trade Organization (WTO).

However, the announcement did not directly address whether this agreement would mean an end to the 35.3% tariffs that the EU had imposed on electric vehicle imports from China in 2024. Previously, the EU accused Chinese manufacturers of benefiting from unfair government subsidies (such as public orders, low-interest loans, cheap land and raw materials) to compete on price.

Despite tariff barriers, Chinese car brands are expanding their market share in Europe. According to data from the European Automobile Manufacturers Association (ACEA) and S&P Global Mobility (a business unit of S&P Global, which provides data, analysis, and in-depth solutions for the automotive industry), the proportion of cars manufactured in China accounted for 6% of total EU sales in the first half of 2025, up from 5% in the same period of 2024. Consulting firm AlixPartners estimates that the market share of Chinese car manufacturers in Europe could double to 10% by 2030.

Meanwhile, EU-based manufacturers are expected to account for 74% of total vehicle sales in the region in the first half of 2025. Germany is the largest car producer, accounting for approximately 20% of EU sales, followed by Spain, the Czech Republic, and France.

Source: VTV

• USTR Makes Findings and Proposes Action in 60 Section 301 Investigations Relating to Failures to Take Action on Trade in Forced Labor Goods
• [VCCI] The US officially initiates a Section 301 Investigation into Vietnam on Intellectual property
• General Secretary and President To Lam's working visit to three ASEAN countries: Demonstrating the stature of proactive and constructive diplomacy.
• Viet Nam accelerates innovation drive as skilled workforce becomes key to science and technology growth
• The US is increasing controls on AI chip exports