Brussels is open to an agreement with China on electric cars: possible stop to duties in exchange for a minimum price. What changes for the Italian market
After months of trade tensions and accusations of unfair competition, a window of dialogue appears to be opening between the European Union and China on the electric car dossier. Brussels had imposed duties of between 7.8% and 35.3% on Chinese electric cars, believed to be illegally subsidized by Beijing. Now, however, the European Commission has put a possible alternative on the table: a minimum import price system that would allow Chinese producers to avoid tariffsprovided that certain conditions are respected.
It’s about a complex mechanism that takes into account not only the price, but also the sales channels, compensations and future investments in the European Union. A change of pace that immediately found a favorable response in Beijing.
The role of China and the weight of the WTO
China’s Ministry of Commerce welcomed the progress of the consultationsspeaking of a test of the common will to resolve differences within the framework of the rules of the World Trade Organization. The Chinese Chamber of Commerce in the EU also underlined the importance of the agreement sign of stability for global automotive supply chains.
Brussels, however, is more cautious. Trade Commission spokesman Olof Gill clarified that the document published it is only a guide and not a definitive agreement. The duties remain in force, because the European investigation has ascertained the existence of subsidies deemed incompatible with WTO rules.
What can happen in Europe
The European Union’s choice to open up to Chinese electric vehicles through the minimum price mechanism could structurally change the car market. This is not a real barrier, but a regulated opening that allows Chinese brands to permanently enter the European market without paying duties, provided they formally renounce the benefits of subsidies. In reality, even with higher prices, Chinese cars will remain more competitive thanks to lower industrial costs and more efficient supply chains. This exposes the European industry to unprecedented pressure, in a phase already marked by high costs and forced transition to electric. The risk is a slow but profound de-industrialisation, with factories closing and production moving out of Europe.
The consequences for Italy
In Italy the impact could be even harsher: Stellantis is already in difficulty and a large part of the related industries risks being cut off from the new value chains. The country could become a large sales market, but no longer a place of production. At the same time, however, the arrival of Chinese brands can also bring opportunities: more accessible electric cars, greater competition and possible manufacturing investments in Europe. If managed well, this opening could attract factories and create new jobs. But without a strong industrial policy, the advantage will remain mainly in the hands of Beijing. The real challenge for Europe is to decide whether it wants to have its own electric car industry or limit itself to importing it from China.
