China & EU reach “Soft Landing” in electric vehicle trade talks

China and the European Union have reached a “soft landing” in their long-running talks over electric vehicles (EVs), a development that could give a boost to bilateral trade, the China Association of Automobile Manufacturers (CAAM) said Tuesday.

After multiple rounds of consultations guided by mutual respect and WTO rules, both sides agreed on price undertaking guidance for Chinese battery EV makers. Under this framework, eligible Chinese exporters can propose voluntary price commitments in place of countervailing duties, which the European Commission will assess fairly and without discrimination.

CAAM emphasized that Chinese EVs are competitive due to technological innovation and cost efficiency developed in China’s large domestic market, rather than government subsidies. The association pledged support for companies in protecting their EU export interests.

Industry analysts said the agreement shows that major economies can resolve trade disputes through dialogue, offering a positive example amid a global trend of rising protectionism and high tariffs.

This move marks a significant step toward ending the two-year-long EU-China EV dispute and could strengthen economic and trade cooperation between the world’s two largest economies.