China reaches common ground with EU over electric vehicle exports to the bloc

China has reached common ground with the European Union to streamline the export of electric vehicles to the bloc. The Commerce Ministry in Beijing announced that the EU will issue a framework with guidelines on the minimum pricing for Chinese electric vehicles.

The announcement did not give any details regarding the 35.3% tariffs that the bloc imposed on Chinese electric vehicles, but hinted at possible negotiations moving forward.

The European Union announced on December 12 that battery electric vehicles (BEVs) from China would be subject to duties ranging from 17% to 35.3%, depending on the producer.

According to the announcement, the European Union settled on the tariffs after conducting an investigation that concluded the BEV value chain in China benefits from unfair government subsidies. It poses a threat of economic harm to BEV producers in the European Union.

Affordable Chinese EVs raise concerns among European car manufacturers

Automotive manufacturers in Europe and the U.S. expressed concerns over the influx of affordable Chinese electric vehicles in their jurisdictions. China’s BYD Seal, a top-selling mid-size EV, goes for 22% less than Tesla in the U.S. The influx prompted Western governments to impose tariffs on China to curb the increasing supply of cheap Chinese electric vehicles in their jurisdictions. 

In May 2024, the Biden-Harris administration imposed 100% tariffs on Chinese EVs. Trump’s new administration initially raised the tariffs to 145% before reducing the duty to 135% following negotiations between the two countries.

In Europe, the value of imported electric cars surged to $11.5 billion in 2023, up from $1.6 billion in 2020. The majority of these electric motors came from Western manufacturers, such as Tesla in America and BMW in Germany, which have factories in China.

Officials from the European Union raised concerns over Chinese monopolization in the EV sector by undercutting vehicles from the EU. China has issued massive subsidies to its EV manufacturers, including low-interest loans from state-owned banks, access to cheap land for factories, tax breaks, and subsidized raw materials and parts from state-owned industries.

While the U.S. effectively neutralized all Chinese EV imports, the EU requires it to import affordable electric vehicles to cut its greenhouse emissions by 55% by 2030.

China boosts dominance in the EV sector to 54%, sells 13 million units in 2025

China’s EV sector has significantly grown in recent years. According to a recent Cryptopolitan report dated January 9, China’s EV dominance has grown to 54% of the market, having sold about 13 million electric and plug-in hybrid vehicles. The biggest Chinese companies are BYD and Geely. 

The report highlighted remarks from Cui Dongshu, secretary-general of the China Passenger Car Association, who stated that Chinese companies are quicker to update their features and incorporate innovative vehicle technologies. Last year, Chinese EV manufacturers sold close to 8 million units. On the other hand, the U.S. sold only 1.3 million electric vehicles in 2025.

Western gas car manufacturers have also shown interest in developing affordable electric vehicles. Ford Motor Company has recently announced plans to launch an electric vehicle in 2028. The company said it will price the vehicle at around $30,000 and incorporate advanced self-driving technology called Level 3 automation, also known as the eyes-off driving system. 

The system will utilize sensors and proprietary software to allow the car to operate without the driver’s visual attention on the road in certain circumstances. The technology advancement will place Ford alongside top competitors in the sector, including Tesla and General Motors.

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