China is simultaneously engaged in tariff disputes with the US while accelerating dialogue with European automotive representatives to resolve the EU's anti-subsidy investigation against Chinese electric vehicles.
Industry sources indicate China-EU discussions have recently progressed smoothly with a high likelihood of resolution. Supply chains are already responding by expanding European operations in anticipation of positive outcomes.
Chinese Commerce Minister Wang Wentao recently met with Hildegard Muller, Chairwoman of the German Association of the Automotive Industry, emphasizing hopes for an "early and proper resolution" to the anti-subsidy case. Wang encouraged increased German automotive investment in China to promote technological innovation.
According to a Taiwanese supplier to Chinese automakers, previously stalled talks have gained momentum since Donald Trump's return to the White House and renewed US-China tariff tensions. Both China and Germany reportedly view the situation as an opportunity to gain an advantage over US-based EV manufacturers.
Despite the absence of formal agreements, Chinese automakers continue to aggressively penetrate the European market. Suppliers have expanded European investments in recent months, establishing warehousing and production capabilities at customers' request.
The EU implemented anti-subsidy tariffs on Chinese EVs in October 2024, with rates varying by manufacturer. SAIC Motor faces a 35.3% anti-subsidy tariff plus standard 10% import duty, resulting in sales declines late last year.
European Automobile Manufacturers' Association data shows EU electric vehicle sales grew 23.9% in the first quarter of 2025, with SAIC recording 52.3% growth while Tesla experienced a 45% decline, suggesting European consumers remain receptive to Chinese electric vehicles despite trade tensions.
Article edited by Jerry Chen
