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

In order to settle their disagreement over Chinese electric vehicle imports, China and the EU have reached a framework agreement. The EU will now publish guidelines for minimum import prices. The action does not guarantee that the 7.8% to 35.3% tariffs imposed in 2024 will be removed, but it does attempt to address concerns about unfair subsidies and market competition. By mid-2025, Chinese EV exports will account for 6% of the EU market due to their rapid growth. Chinese exporters can now submit price undertakings, including investment and shipment commitments, to be evaluated impartially under WTO regulations thanks to the new framework. The agreement was viewed as a step toward reducing tensions and promoting sustainable growth in the EV industry, with both sides emphasizing cooperation and fair trade.