The European Union and China have agreed on a framework aimed at easing tensions over the import of Chinese-made electric vehicles into the European market, following months of trade friction triggered by steep EU tariffs.
Under the agreement announced on Monday, Brussels outlined next steps through a new guidance document setting out conditions for Chinese EV manufacturers, including pricing rules and minimum import prices. The EU said the price thresholds are designed to ensure that subsidized vehicles do not distort competition or harm the bloc’s automotive industry.
A European Commission spokesperson said the EU remains open to electric vehicles from all global markets but stressed the need for fair competition. The spokesperson added that Chinese automakers willing to comply with the new conditions could have their investment proposals within the EU considered by the Commission.
Trade tensions escalated in 2024 when the EU imposed tariffs ranging from 7.8% to 35.3% on Chinese EVs after an anti-subsidy investigation. The bloc argued that heavy state backing enabled Chinese manufacturers to flood the European market with low-priced vehicles, undercutting local producers and threatening jobs and industrial competitiveness.
By introducing minimum import prices, the EU aims to reduce the price gap between Chinese and European-made electric vehicles while maintaining market stability.
Chinese brands have continued to expand their footprint in Europe. Data from the European Automobile Manufacturers’ Association show that Chinese vehicles accounted for about 6% of EU car sales in the first half of 2025, with analysts projecting the share could rise to around 10% by 2030.