HONG KONG – On Monday, China announced it had successfully brokered an agreement with the European Union concerning the export of Chinese-manufactured electric vehicles to European markets.

According to a statement from Beijing’s Commerce Ministry, the EU plans to introduce guidelines that set minimum pricing for Chinese car exporters. However, the announcement did not explicitly address whether this deal would lead to the removal of tariffs, which could reach up to 35.3%, that the EU planned to impose on Chinese electric vehicle imports starting in 2024 following a detailed investigation.

The growing presence of Chinese electric vehicle manufacturers in international markets has raised concerns among automotive companies in both Europe and the United States. To mitigate the surge of competitively priced Chinese EVs, the EU implemented tariffs, arguing that Chinese automakers were gaining an edge through unfair governmental subsidies. Similarly, the U.S. imposed a 100% tariff on electric vehicles produced in China as of 2024.