Sou Hu Cai Jing·2026-01-15 12:55Core Viewpoint - The EU has made significant progress in negotiations with China regarding anti-subsidy tariffs on electric vehicles, replacing high tariffs with a "price commitment" mechanism, which is seen as a positive signal for managing trade frictions between the two parties [1][3][12]. Group 1: Negotiation Outcomes - The "price commitment" mechanism is a major outcome of multiple rounds of negotiations between China and the EU, indicating a mutual effort to enhance cooperation in the automotive industry [3][12]. - The EU will provide general guidance for Chinese exporters of pure electric vehicles to comply with WTO rules, allowing for a more practical approach to address concerns [1][5]. - The agreement is viewed as a pragmatic breakthrough that stabilizes market access and expectations for the industry [3][4]. Group 2: Impact on Tariffs and Pricing - Previously proposed high anti-subsidy tariffs could have reached nearly 45%, significantly impacting the cost and pricing structure for Chinese electric vehicle exports to Europe [4][5]. - The EU's decision to adopt the "price commitment" mechanism aims to avoid imposing tariffs as high as 35.3%, allowing Chinese companies to maintain a competitive edge in the EU market [4][8]. - The "price commitment" will require Chinese exporters to set minimum export prices that are higher than previous levels, which may affect sales volumes but ultimately retains profits within the companies [6][7]. Group 3: Industry Implications - The new mechanism is expected to help Chinese electric vehicle manufacturers avoid the negative impacts of high tariffs, thus enhancing their profitability and market presence in Europe [7][10]. - The agreement encourages a shift away from a "low-price volume" strategy towards a focus on high-end products and local production in Europe [9][10]. - The established legal standards and evaluation processes in the guidance document are anticipated to regulate pricing behavior and reduce trade friction risks [10][11]. Group 4: Industry Associations' Reactions - Various industry associations, including the China Association of Automobile Manufacturers, have expressed strong support for the resolution of the EU's anti-subsidy case, highlighting its importance for stable economic and trade relations [11][12]. - The consensus reached is seen as a response to industry concerns and is expected to promote healthy development in China-EU economic and trade cooperation [12][13].