China and the European Union have reached a landmark agreement to set minimum prices for Chinese electric vehicles entering the EU, replacing the threat of steep tariffs after more than a year of negotiations.

The arrangement, built around WTO‑compatible price undertakings, allows Chinese exporters to avoid punitive duties while retaining revenue that would otherwise be lost to tariffs. Officials on both sides say the deal demonstrates a shared willingness to resolve disputes through dialogue rather than escalation, reinforcing confidence in the global trading system at a time of rising protectionism.

Experts note that the pact stabilizes supply chains, offers predictability to automakers, and signals that major economic powers can still settle trade conflicts through structured, rules‑based cooperation rather than confrontation.

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