(Source: Cover News 2026-01-16)
Recently, China-EU negotiations on the electric vehicle countervailing case have reached an important breakthrough. The "price commitment" mechanism has replaced high countervailing taxes, bringing a phased reconciliation to this w88 dispute. On January 15, Ministry of Commerce spokesperson He Yongqian said at a press conference that the "soft landing" of the electric vehicle case will significantly boost market confidence and inject new impetus into China-EU automobile w88 and investment cooperation.
The Ministry of Commerce press conference. Photography by cover news reporter Su Yu
After more than a year of negotiations, the European Commission officially released the "Guidance Document on Submission of Price Commitment Applications" (hereinafter referred to as the "Guidance Document"). The Ministry of Commerce emphasized that both parties agreed on the need to provide general guidance on price commitments to Chinese exporters of pure electric vehicles to the EU so that Chinese exporters can resolve relevant concerns in a more practical, targeted and WTO-compliant manner.
Tu Xinquan, Dean of the China WTO Research Institute at the w88 casino, analyzed that compared with paying countervailing duties, companies can retain more profits, and bicycle profit margins may increase due to price increases; but on the other hand, price increases may affect product market competitiveness, which will also depend on market price elasticity.
“The competitiveness of China’s electric vehicle industry comes from continuous technological innovation, as well as cost and scale advantages formed in full market competition, rather than relying on subsidies.” Fang Dongkui, secretary-general of the China Chamber of Commerce in the EU, said in an interview with a cover news reporter that the “soft landing” of the electric vehicle case will help deepen cooperation between China and Europe’s electric vehicle industry in market expansion, technological innovation and other fields, and inject new impetus into green transformation and coordinated industrial development in China, Europe and even the world.
“Price Commitment” instead of high taxationGive enterprises greater room for autonomy
Looking back on the course of the dispute, from the EU launching a countervailing investigation on Chinese electric vehicles in October 2023, to the EU imposing a five-year countervailing duty on Chinese electric vehicles at the end of October 2024, and then to China taking the countervailing measures to the WTO dispute settlement mechanism. This w88 dispute surrounding the electric vehicle industry once became the focus of China-EU economic and w88 relations.
On January 10, at the 2026 Brussels Motor Show in Belgium, the Chinese electric vehicle exhibition area attracted many visitors. Xinhua News Agency
Previously, the European Commission imposed a countervailing tax of up to 35.3% on electric vehicles made in China on the basis of the existing 10% tax. SAIC, Geely and BYD are facing increased tariff rates of 35.3%, 18.8% and 17% respectively. Tesla applied for a separate review, and its final tariff rate was 7.8%.
The "Guidance Document" issued by the European Union clearly states that it will follow the basic principles of non-discrimination, objectivity and fairness, and use unified legal standards to evaluate the price commitment applications of Chinese car companies. Qualified companies can formally replace the payment of countervailing duties with price commitments.
“From an operational level, price commitments give companies more room for autonomy. Companies can flexibly adjust prices according to their own operating conditions and market demand, which is more flexible than passively bearing a fixed tax rate.” Tu Xinquan said that from the perspective of benefit distribution, if countervailing duties are directly levied, the tax revenue will ultimately belong to the government of the importing country; while the market benefits or higher profit margins brought about by adjusting selling prices and increasing prices through price commitments are obtained by the export companies themselves.
Uniform price standards do not apply to all enterprisesThe actual solution is flexible and diverse
The reporter checked the "Guidance Document" and found that it sets two possible ways to set the MIP (import price): one is based on the exporter's CIF (cif price) superimposed on the relevant range of countervailing duties; the other is to set the MIP based on the sales price of similar products of non-subsidized pure electric vehicles produced in the EU, including sales and administrative expenses and reasonable profit margins.
Tu Xinquan emphasized that the guidance document only provides a general framework, and the finalization of specific price commitments requires individual negotiations between each company and the European Commission. During the negotiation process, enterprises should formulate personalized plans based on the actual situation such as the positioning, configuration, and target market segmentation of their own export products.
“Because the market competitiveness and cost structure of different car models are different, the unified price standard does not apply to all companies, which requires companies to give full play to their subjectivity and actively strive for commitment conditions that are more in line with their own development.” Tu Xinquan said that in addition, the document also allows companies to submit applications individually or jointly. From a practical point of view, submission by a single company can simplify the process, improve the efficiency of approval, and avoid extending the evaluation cycle due to complex car models.
Wei Wenqing, deputy secretary-general of the China Association of Automobile Manufacturers, also said in an interview with reporters that the guide lists two commonly used calculation modes, and the actual solutions are flexible and diverse. The final price must be approved by both parties and reflects the principle of consensus. Enterprises need to study the guidance documents in depth and choose the most suitable declaration path based on their own circumstances. They need to prepare sufficient materials and communicate with the EU to ensure compliance with procedural requirements.
At the 2026 Brussels Motor Show in Belgium, the Chinese electric vehicle exhibition area attracted many visitors. Xinhua News Agency
Localized operation is the only way to develop the European marketRealize the transformation from “product export” to “industrial rooting”
The "Guidance Document" shows that investment commitments made in local European manufacturing will be actively considered when evaluating price commitment quotes. The European Commission said that any investment commitments in battery electric vehicle-related industries within the EU will be considered as part of the assessment of price commitments.
Since the introduction of EU countervailing duties, Chinese electric vehicle companies have announced a number of investment and production plans in the EU. In May 2025, BYD announced the establishment of its European headquarters in Budapest and the establishment of a new European R&D center. Xpeng Motors' first European localized production project will be officially launched in Austria in the third quarter of 2025.
“The price commitment mechanism will indeed have a certain impact on the European market layout of Chinese car companies, but localized operations are not entirely driven by w88 barriers, but more by the inherent laws of the development of the automotive industry.” Tu Xinquan pointed out that the internationalization process of China’s electric vehicle industry started late. Compared with traditional European car companies, our internationalization experience is still accumulating. However, from the perspective of development trends, localized operations are the only way for Chinese car companies to explore the European market. w88 measures such as countervailing duties only accelerate this process, but are not the fundamental motivation.
He said that with the stabilization of the Sino-European w88 environment, the investment layout of Chinese car companies in Europe will be further deepened. In addition to establishing production bases, technical cooperation and supply chain localization will also become important directions. This can not only effectively avoid risks caused by w88 policy fluctuations, but also help companies deeply integrate into the European market, adapt to local technical standards, consumption habits and environmental protection requirements, and achieve the transformation from "product exports" to "industrial roots". BYD, GAC and other companies have launched localized production projects in Europe, which is a reflection of complying with the laws of the industry.
At the 2026 Brussels Motor Show in Belgium, visitors visited the NIO booth. Xinhua News Agency
The EU’s “de-risking” policy inertia is still thereHighlight the value of dialogue and cooperation in resolving differences
Wei Wenqing, deputy secretary-general of the China Association of Automobile Manufacturers, pointed out that China and the EU have reached a consensus on price commitments on the anti-subsidy investigation of electric vehicles, and that companies can proactively raise prices to replace high tariffs and ease w88 frictions. This mechanism releases a positive signal that the two sides are working toward each other in a complex external environment, and is conducive to improving the overall atmosphere of China-EU economic and w88 relations.
The industrial chains of China and Europe are deeply intertwined, forming "I am among you, and you are among me" in the global industrial and supply chains. Wei Wenqing analyzed that electric vehicles produced in China include foreign brands, and European car companies also rely on Chinese supply chain exports. China's leading advantage in electrification transformation can help the EU address climate change goals. The EU still has strengths in traditional automotive technology and standard setting, and China and the EU have complementary potential. This consensus sends a positive signal and will help promote practical cooperation in more fields in the future.
"Although the EU's policy inertia of 'de-risking' remains, various investigations against Chinese companies have not stopped, and the resolution of the China-EU electric vehicle w88 dispute demonstrates the core value of dialogue and cooperation in resolving w88 differences." Tu Xinquan said that for China and the EU, only by adhering to the concept of win-win cooperation can we jointly maintain the stability of the industrial chain and supply chain in the face of changes in global w88.
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