China, EU agree on price undertaking guidance for Chinese electric vehicles: commerce ministry

BEIJING, Jan. 12 (Xinhua) -- China and the European Union have agreed on the necessity of providing general guidance on price undertakings for Chinese companies exporting battery electric vehicle (BEV) passenger cars to the EU, according to China's Ministry of Commerce on Monday.

The move aims to address relevant concerns in a way that is more practical, targeted and consistent with WTO rules, the ministry said in a statement.

It noted that in the spirit of mutual respect, the two sides have conducted multiple rounds of consultation in order to implement the consensus of the China-EU Summit and properly resolve the EU's anti-subsidy case concerning Chinese BEVs.

To that end, the European Commission on Monday issued guidance on the submission of price undertaking offers, covering various aspects that should be addressed in any such offer, including the minimum import price, sales channels, cross-compensation, and future investments in the EU.

Each price undertaking offer is subject to the same legal criteria, and the commission will conduct each assessment in an objective and fair manner, following the principle of non-discrimination and in accordance with WTO rules, the commission said.

The progress fully reflects the spirit of the dialogue and the outcomes of the consultations between China and the EU, showing that the two sides have the ability and willingness to resolve differences properly -- through dialogue and consultation, under the framework of WTO rules -- and to maintain the stability of automotive industrial and supply chains in China, the EU, and throughout the world, the commerce ministry said.

"This is conducive not only to ensuring the healthy development of China-EU economic and trade relations, but also to safeguarding the rules-based international trade order," the ministry added.

The China Chamber of Commerce for Import and Export of Machinery and Electronic Products has noted that the proper resolution of the EU's anti-subsidy case against Chinese electric vehicles (EVs) is a shared expectation among industry players across the EV value chain, in both China and the EU.

The move will enhance the security and stability of related industrial and supply chains, safeguard overall China-EU economic and trade cooperation, and uphold the rules-based international trade order, the chamber said.

The China Chamber of Commerce to the European Union has said it welcomes the progress China and the EU have made in resolving the EV case through dialogue, noting that this will boost market confidence, improve the investment environment for Chinese EV firms in Europe, and support deepened China-EU cooperation in technological innovation and green transition. ■