China, EU Agree to Ease Dispute Over Chinese EV Imports

Group 1 - China and the European Union (EU) are taking steps to ease their dispute over EU imports of Chinese electric vehicles (EVs), with a focus on setting minimum import prices to offset subsidies [1][9] - The EU remains open to EVs from around the world, provided competition is fair, and is willing to consider price commitments under World Trade Organization rules [2] - China's Commerce Ministry supports the move as beneficial for China-EU trade relations and the global trading system [3] Group 2 - Tensions escalated after the EU launched an anti-subsidy investigation into Chinese EVs, imposing countervailing tariffs between 7.8% and 35.3% for five years starting in late 2024 [4] - In the first half of 2025, China-made vehicles accounted for 6% of EU auto sales, a 5% increase year-over-year [5] Group 3 - BYD Company Limited significantly increased its market presence in Europe, outselling Tesla in Germany and the UK, with annual sales in Germany rising to 23,306 vehicles, an eightfold increase, while Tesla's sales dropped nearly 50% to 19,390 [6] - Geely Automobile Holdings Limited expanded into new European markets, launching the Geely EX5 in Poland and Italy in 2025 [7]