European Union authorities together with Chinese representatives agreed to study the implementation of minimum prices for electric vehicle imports from China as a new strategy to replace previous EU tariffs from the previous year. A European Commission spokesperson validated the approval on Thursday just as media reports emerged about starting talks.

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Maros Sefcovic together with Wang Wentao as the Chinese Commerce Minister led a meeting on investigating possible minimum price requirements for EV imports from China within the previous day. According to the Chinese Commerce Ministry there would start immediate negotiations following their announcement.

Commissioner Sefcovic maintains that agreed minimum prices must be capable of enforcing tariffs as they exist in the current EU system. The EU implemented minimum price agreements for homogenous commodities in previous instances but automobile complexity makes these measures inapplicable. The Commission has indicated doubts about the effectiveness of using one minimum price to overcome injurious effects from subsidies.

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During October 2021 the European Union raised its tariff levels for Chinese EV imports up to 45.3% with existing general car import tariffs set at 10%. Brussels and Beijing have started to explore lifting the existing tariffs by presenting minimum price guarantees for imported vehicles which are called price undertakings for imported cars. EU tariffs against Chinese auto manufacturers amounted to 17.0% of BYD products and 18.8% of Geely products together with 35.3 percent of SAIC products.

The discussions seek a solution for the enduring trade conflict that affects French cognac exporters alongside other French companies because of Chinese trade restrictions within the broader scope of escalating tensions between President Donald Trump and key European Union and Chinese markets.

The German auto industry association VDA has welcomed the talks between the EU and China, labeling the existing duties a "mistake" and advocating for a negotiated resolution. The VDA emphasized the need to reduce obstacles and distortions in international trade. German carmakers, who generated a significant portion of their sales in China last year, had opposed the tariffs due to concerns about a potential trade conflict with their second-most important trading partner after the U.S.