EU allows individual negotiations on tariffs on electric vehicles, 'reopens export routes to Europe'

*This content was translated by AI.

The Chinese government has allowed individual corporate-level negotiations, breaking the principle of "collective negotiations by the Ministry of Commerce" that it has adhered to in response to the European Union's measures to impose tariffs on Chinese electric vehicles. The move comes after Volkswagen (VW) recently drew exceptional tariff relief benefits for Chinese electric vehicle models, which are expected to open a new phase in the stalled trade conflict between the EU and China.

According to major foreign media such as Reuters on the 12th (local time), China's Ministry of Commerce recently announced that Chinese electric vehicle manufacturers have decided to accept negotiations with EU authorities on tariff exemptions, including "minimum-price commitments." Until now, Chinese authorities have strictly prohibited individual companies from contacting the EU alone and have insisted on collective negotiations led by the Ministry of Commerce. If individual negotiations are attempted, they have pressured private companies, signaling strong disadvantages such as exclusion of domestic support measures.

This change in the Chinese government's position was triggered by Volkswagen's "Cupra Tavascan." After persistent negotiations with EU authorities over the model, which is produced in China and exported to Europe, Volkswagen was recently approved for a remedy to avoid high tariffs. This leaves a precedent that the additional tariff barriers of up to 35% imposed on Chinese electric vehicles can be broken through individual quality and price proofs.

Industry experts say the Chinese government's decision is a "practical retreat" to take advantage. Analysts say that at a time when the global trade environment has become more unstable due to the re-government of the Donald Trump administration, a flexible response is needed to prevent the European market from being completely closed. With individual negotiations allowed, major companies such as BYD, Gely and Shanghai Automobile (SAIC) will also be able to discuss setting minimum prices and limiting volume with the EU in line with their export strategies and margin structures.

However, the move does not mean a resolution of all conflicts. The EU still maintains that the Chinese government's unfair subsidies are disrupting the market order, and plans to impose strict verification standards in negotiations with individual companies. In China, there are many voices concerned about excessive competition between domestic companies or weakening government control if individual negotiations spread.

Still, the market sees the change as a positive sign to prevent a trade war escalation. If a method of setting a "lowest export price" instead of tariffs is agreed, Chinese companies will be able to avoid the worst-case scenario of exiting the European market even if their price competitiveness weakens somewhat. European consumers are also expected to be able to escape some of the pressure of a sharp rise in electric vehicle prices.

In the end, China's turn of position is interpreted as a desperate measure for the survival of its automobile industry and a strategic choice to avoid a full-scale economic war with the EU. How favorable conditions individual companies will be able to obtain EU approval in the future is expected to be a key variable in determining the topography of the global electric vehicle market.

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*This content was translated by AI.