China and the EU agree on a framework to resolve EV trade tensions through pricing guidelines and price undertakings.

China and the European Union have reached a framework agreement to resolve their dispute over Chinese electric vehicle imports, with the EU set to issue guidelines for minimum import pricing. The move aims to address concerns over unfair subsidies and market competition, though it does not confirm whether the 7.8% to 35.3% tariffs imposed in 2024 will be lifted. Chinese EV exports have grown rapidly, capturing 6% of the EU market by mid-2025. The new framework allows Chinese exporters to submit price undertakings, including investment and shipment commitments, to be assessed objectively under WTO rules. Both sides emphasized cooperation and fair trade, with the agreement seen as a step toward de-escalating tensions and supporting sustainable growth in the EV sector.