China, EU agree on price undertaking guidance for Chinese electric vehicle exporters: commerce ministry

China

China, EU agree on price undertaking guidance for Chinese electric vehicle exporters: commerce ministry

2026-01-12 20:44 Last Updated At：01-13 15:27

China and the European Union (EU) have agreed that it is necessary to provide general guidance on price undertakings for Chinese exporters of passenger battery electric vehicles to the EU, China's commerce ministry said on Monday.

The move aims to address relevant concerns in a more practical, targeted, and consistent manner with World Trade Organization (WTO) rules, according to the Ministry of Commerce in a statement.

Accordingly, the European Commission will issue a Guidance Document on Submission of Price Undertaking Offers. In the document, the EU confirms that it will assess each undertaking application under the same legal criteria, in accordance with the principle of non-discrimination and relevant WTO rules, in an objective and fair manner.

The progress fully reflects the spirit of dialogue and the outcomes of consultations between China and the EU. It shows that both China and the EU have the ability and willingness to properly resolve differences through dialogue and consultation within the framework of WTO rules, thereby maintaining the stability of automotive industrial and supply chains in China, the EU, and the whole world. This is conducive not only to ensuring the healthy development of China-EU economic and trade relations, but also to safeguarding the rules-based international trade order, the statement said.

On the same day, the China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCME) also issued a statement welcoming the positive outcome of the consultations.

The CCCME noted that eligible Chinese EV makers may now submit price undertaking applications in accordance with the EU's guidance, and the European Commission has pledged to review all applications objectively, fairly, and under uniform standards.

The proper settlement of this case meets the shared expectations of industries along the EV supply chain in both China and Europe. It will help ensure the security and stability of related industrial and supply chains and safeguard the broader China-EU economic and trade relationship, the CCCME said.

The chamber expressed appreciation for the substantial efforts made by China's Ministry of Commerce in defending the interests of the domestic industry. It also pledged to encourage and support relevant Chinese enterprises in making full use of the consultation outcomes to protect their interests in exporting to the EU and promote healthy cooperation between the industries of both sides.

U.S. Fed holds interest rate steady

The U.S. Federal Reserve on Wednesday kept the target range for the federal funds rate unchanged at 3.5-3.75 percent.

"Economic activity is expanding at a solid pace despite elevated uncertainty that owes, in part, to the conflict in the Middle East. Productivity growth and capital investment are strong. Job gains have kept pace with the workforce, and the unemployment rate has changed little," said the Federal Open Market Committee (FOMC) in a statement.

Meanwhile, "inflation remains elevated relative to the Committee's 2 percent goal, in part reflecting supply shocks that have driven price increases in certain sectors, including energy," the FOMC went on in the statement.

In support of the Fed's dual mandate, the committee "decided to maintain the target range for the federal funds rate at 3-1/2 to 3-3/4 percent," the statement said.

The FOMC reaffirmed "its policy of maintaining ample reserves in the banking system."

All 12 FOMC members voted for keeping the rate unchanged.

Following the FOMC meeting held on Tuesday and Wednesday, meeting participants submitted their projections of the most likely outcomes for real GDP growth, the unemployment rate, and inflation for each year from 2026 to 2028 and over the longer run.

The Federal Reserve Board members and Federal Reserve Bank presidents project that U.S. median GDP growth will be 2.2 percent in 2026, lower than the March projection of 2.4 percent. The median unemployment rate will be 4.3 percent in 2026, down from the March projection of 4.4 percent. Their GDP growth and unemployment projections for 2027 are at 2.3 percent and 4.3 percent, respectively, unchanged from the March projection.

As for inflation based on the personal consumption expenditures price index, FOMC meeting participants project it at 3.6 percent for 2026 and 2.3 percent for 2027, both higher than the March projections of 2.7 percent and 2.2 percent, respectively.