China-EU agreement on price undertaking guidance for EV exports to stabilize supply chains: analyst

The agreement between China and the European Union (EU) on providing general guidance on price undertakings for Chinese exporters of passenger battery electric vehicles (BEVs) to the EU will help stabilize industrial and supply chains, said an industry analyst.

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 on Monday.

The statement noted that in the spirit of mutual respect, the two sides have conducted multiple rounds of consultations in order to implement the consensus of the China-EU Summit and properly resolve the EU's anti-subsidy case concerning Chinese BEVs.

To that end, the European Commission on Monday issued guidance on the submission of price undertaking offers, covering various aspects that should be addressed in any such offer, including the minimum import price, sales channels, cross-compensation, and future investments in the EU.

Each price undertaking offer is subject to the same legal criteria, and the commission will conduct each assessment in an objective and fair manner, following the principle of non-discrimination and in accordance with WTO rules, the commission 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.

Chen Huiqing, director of the CCCME's Legal Department, said that reaching a price commitment helps companies protect their profits from tariffs.

"For companies, reaching a price commitment means profits stay with the firm, instead of being taken away as EU anti-subsidy tariffs," said Chen.

The price-undertaking option will help stabilize supply chains and support global trade, she added.

"After multiple rounds of talks, China and the EU have reached a positive, 'soft-landing' outcome that helps stabilize industrial and supply chains and supports broader China-EU trade and the global trade order," Chen said.

China-EU agreement on price undertaking guidance for EV exports to stabilize supply chains: analyst

Japan's benchmark yield on 10-year government bonds has risen to 2.14 percent, marking its highest level since February 1999, according to Japanese media outlets on Tuesday.

The 10-year bond yield serves as a key indicator of long-term interest rates in Japan.

Bond prices and yields move in opposite directions. When investors actively purchase government bonds, prices rise and yields fall. Conversely, when bonds are sold off, prices drop and yields increase.

According to the media reports, the recent spike in bond yields has been driven by Japanese Prime Minister Sanae Takaichi's possible move on dissolving the lower house. Investors believe that the Japanese government may further implement expansionary fiscal policies.

Japan's gross debt has hit a staggering 240 percent of GDP. The implementation of expansionary fiscal policies and large-scale bond issuance by the Takaichi cabinet have continually deepened investors' concerns about the deterioration of Japan's fiscal situation.

Japan's 10-year gov't bond yield hits 27-year high: media