EU, China Unveil Guidelines to Resolve Trade Dispute Over Beijing’s EV Subsidies

The EU’s decision came after a year-long investigation that found that carmakers in China benefit from massive state subsidies.

Employees work on an electric vehicle production line at the Leapmotor factory in Jinhua, Zhejiang Province, China, on Sept. 18, 2024. Adek Berry/AFP via Getty Images

China and the European Union have agreed on a new measure to settle disputes over Beijing’s massive state aid to its electric vehicle (EV) makers.

The European Commission—the EU’s executive arm—released a guideline document on Jan. 12 for EV exporters based in China regarding submitting price undertaking offers, which could replace the steep tariffs imposed in October 2024 by the Commission.