Economy February 12, 2026

China Signals Support as Some EV Makers Strike Individual Pricing Deals with EU

Beijing says it welcomes more China-made electric vehicle firms reaching minimum-price agreements with the European Union after a tariff-exemption deal for a Volkswagen brand model

By Leila Farooq
China Signals Support as Some EV Makers Strike Individual Pricing Deals with EU

China's commerce ministry said it expects more Chinese electric-vehicle manufacturers to secure minimum-price arrangements with the European Union and expressed willingness to keep communications open with the bloc. The statement followed the EU's approval of an exemption for Volkswagen's Cupra Tavascan, granted in return for an agreed minimum price and a sales quota - the first such exemption since the EU imposed tariffs on China-based EV makers in 2024.

Key Points

  • China's commerce ministry said it expects more Chinese EV makers to reach minimum-price agreements with the EU and will maintain communication with the bloc - impacting the auto and trade sectors.
  • The European Commission approved a tariff exemption for Volkswagen's Cupra Tavascan contingent on an agreed minimum price and a sales quota - significant for China-made EV exports to Europe.
  • This Cupra exemption is the first since the EU introduced tariffs on China-based EV makers in 2024, affecting regulatory and market-access dynamics for electric-vehicle manufacturers.

BEIJING, Feb 12 - China said on Thursday it looks forward to additional Chinese electric-vehicle (EV) manufacturers reaching agreements with the European Union on minimum pricing, signaling a softer stance toward firms negotiating individually with the bloc. During a routine press briefing, commerce ministry spokesperson He Yadong said Beijing is prepared to maintain communication with EU officials and noted that both sides back Chinese EV makers "to make good use of price undertakings."

The statement came after the European Commission this week approved a request from German automaker Volkswagen's Cupra brand to exempt its China-built Tavascan SUV coupe from import duties, on condition of an agreed minimum price and a sales quota. That decision marks the first exemption granted since the European Union implemented tariffs targeting China-based EV producers in 2024.

Ministry comments reflect a change in tone from earlier criticism of companies negotiating separate terms with the EU. He Yadong's remarks emphasized continued dialogue between Beijing and Brussels and highlighted mutual support for Chinese EV makers employing price undertakings as part of their market access arrangements.

Separately, the article referenced a market-oriented service that evaluates Volkswagen shares. That service, ProPicks AI, assesses VOWG alongside thousands of other companies using more than 100 financial metrics. The service said it analyzes fundamentals, momentum, and valuation without bias and cited past notable winners it highlighted, including Super Micro Computer with a performance of +185% and AppLovin with +157%.

The commerce ministry's comment and the EU's approval of the Cupra exemption together underscore a developing pattern in how trade and regulatory negotiations between China-based EV makers and the European Union are unfolding. Beijing's softer response underlines a willingness to see firms pursue bilateral pricing arrangements that may enable access to European markets while adhering to agreed conditions.


Summary

China expressed support for more of its electric-vehicle manufacturers to complete individual minimum-price agreements with the European Union, after the EU approved an exemption for Volkswagen's Cupra Tavascan in exchange for a price commitment and sales quota. The exemption is the first since the EU imposed tariffs on China-based EV makers in 2024.

Risks

  • Uncertainty whether additional Chinese EV makers will successfully negotiate similar minimum-price arrangements with the EU - this could affect export volumes and pricing strategies in the auto sector.
  • The reliance on negotiated exemptions and price undertakings introduces unpredictability for market access to Europe, with potential consequences for manufacturers, suppliers, and investors in the EV industry.

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