EU Exempts Chinese-made SUV from Tariffs, Ministry of Commerce: Supports Automakers on Price Undertaking Negotiations

Gasgoo Munich- At a regular press briefing on February 12, Ministry of Commerce spokesperson He Yadong addressed the European Commission's recent decision to waive tariffs on a Chinese-made Volkswagen SUV. He reiterated that both China and the EU support Chinese EV firms leveraging price undertakings to drive mutual gains in the automotive sector, charting a clear course for future cooperation.

During the briefing, a reporter noted that the European Commission had approved tariff exemptions for a Chinese-made Volkswagen SUV, which will now be imported under a minimum price and quota model. The reporter asked whether the Ministry of Commerce supports EV manufacturers negotiating with the EU on a case-by-case basis.

Cupra Tavascan: Image source: Cupra

The model receiving the exemption is the CUPRA Tavascan electric SUV from the Volkswagen Group. This marks the first individual price undertaking accepted by the EU in the China-EU electric vehicle anti-subsidy case.

Responding to the news, He noted that China and the EU had achieved a "soft landing" for the EV dispute within the World Trade Organization framework after multiple rounds of talks. That outcome has been widely welcomed by the international community and industries on both sides.

Under the consensus reached, both sides back the use of price undertakings as a solution for Chinese EV firms. The EU has released specific guidelines from the negotiations, explicitly committing to non-discriminatory principles and promising objective, fair assessments of corporate applications.

The guidelines clarify core principles, application methods, and minimum import price settings, providing a clear framework for Chinese automakers seeking tariff waivers. He emphasized that the China-EU auto sectors are deeply integrated and mutually beneficial, adding that the EU's exemption for this specific model is a concrete result of those negotiations.

He also expressed hope that the EU will effectively implement the consensus from the China-EU leaders' meeting and the results of the case consultations. Beijing expects more Chinese companies to reach price undertaking agreements with the EU. China remains committed to dialogue to foster an open, stable market environment, driving joint development through positive interaction.