China's stance on electric vehicle (EV) manufacturers negotiating with the European Union (EU) has undergone a significant shift. After Volkswagen secured a tariff reprieve for one of its China-made SUV models, China's commerce ministry has now accepted that Chinese EV makers can negotiate independently with the EU. This move comes after Beijing reopened negotiations with Brussels last December, urging the bloc not to engage in separate talks with Chinese manufacturers. Despite EU rules allowing automakers to apply for tariff exemptions on specific China-made electric models, China had previously opposed individual negotiations. However, with the Volkswagen deal setting a precedent, analysts predict that other automakers may soon follow suit. The all-electric Tavascan SUV coupe, which had been subject to an extra 20.7% tariff on top of an existing 10% levy, is now eligible for exemption in exchange for an agreed minimum price and a sales quota. This development marks a turning point in China's approach to EV tariffs, potentially opening up new opportunities for Chinese EV manufacturers in the European market.
