Finance
China softens stance on EV makers negotiating with EU individually
Published by Global Banking & Finance Review®
Posted on February 12, 2026
1 min readLast updated: February 12, 2026
Quick Summary
China encourages EV makers to negotiate with the EU on pricing, softening its previous stance. Volkswagen's Cupra brand receives an EU import tariff exemption.
China softens stance on EV makers negotiating with EU individually
China's Engagement with the European Union
BEIJING, Feb 12 (Reuters) - China looks forward to more of its EV makers reaching agreements on minimum prices with the European Union, a Chinese commerce ministry spokesperson said on Thursday, softening its previous criticism of firms negotiating with the bloc individually.
Communication and Support for EV Makers
China is willing to maintain communication with the EU, and "both sides support Chinese EV makers to make good use of price undertakings," ministry spokesperson He Yadong said during a regular press briefing.
Volkswagen's Import Tariff Exemption
The European Commission this week approved a request by German auto giant Volkswagen's Cupra brand to exempt its China-made Tavascan SUV coupe from import tariffs in exchange for an agreed minimum price and a sales quota.
Background on EU Tariffs Against China
That followed months of intense discussions that led to the first exemption since the European Union introduced tariffs against China-based EV makers in 2024.
(Reporting by Joe Cash; Writing by Beijing Newsroom; Editing by Muralikumar Anantharaman)
Key Takeaways
- •China supports EV makers negotiating with the EU.
- •Volkswagen's Cupra brand gets EU import tariff exemption.
- •China's commerce ministry softens its stance on individual negotiations.
- •EU introduced tariffs against China-based EV makers in 2024.
- •Communication between China and the EU is ongoing.
Frequently Asked Questions about China softens stance on EV makers negotiating with EU individually
1What is the European Commission?
The European Commission is the executive branch of the European Union responsible for proposing legislation, implementing decisions, and upholding EU treaties.
2What are electric vehicles (EVs)?
Electric vehicles (EVs) are automobiles that are powered by electric motors instead of internal combustion engines, offering a more sustainable transportation option.
3What is a sales quota?
A sales quota is a specific target set for sales representatives or teams, indicating the minimum amount of sales they are expected to achieve within a given timeframe.
4What is price undertaking?
A price undertaking is a commitment made by a company to adhere to a specified minimum price for its products or services, often to comply with regulatory requirements.
