EU guidance sets price undertaking route for Chinese EV imports

Core Viewpoint - The European Commission has provided guidance for Chinese electric vehicle (EV) exporters to avoid EU anti-subsidy duties by submitting price undertakings based on minimum import prices [1][4]. Group 1: Guidance on Price Undertakings - The guidance outlines the structure and content required for price undertaking offers, including minimum import prices, product scope, annual sales volumes, distribution channels, and risks related to cross-compensation [2][5]. - All price undertaking offers will be evaluated under the same legal standards as per the EU's basic anti-subsidy Regulation, ensuring an objective and non-discriminatory assessment process aligned with World Trade Organization (WTO) rules [3][4]. Group 2: Assessment Criteria - Acceptable undertakings must eliminate the harmful effects of subsidization, be practical, limit cross-compensation risks, and comply with broader policy considerations [3]. - Minimum import prices can be determined by adjusting historical costs, insurance, and freight prices or by referencing sales prices of comparable non-subsidized BEVs produced in the EU [5]. Group 3: Submission and Evaluation Process - Chinese exporters can submit price undertaking offers individually or jointly, with each proposal evaluated on its own merits [6]. - The China Chamber of Commerce to the EU (CCCEU) stated that the outcome of the China-EU consultations supports trade stability and reflects business concerns, emphasizing the importance of dialogue in dispute management [6][7]. Group 4: Market Impact - CCCEU believes that the constructive outcome will enhance market confidence, create a stable environment for Chinese EV manufacturers in Europe, and foster deeper cooperation between China and the EU in market development and technological innovation [7].