The European Commission, in charge of EU trade policy, outlined in a document how electric carmakers in China can offer price undertakings -- which set minimum import prices for exporters to offset subsidies. This would replace duties.

The EU in 2024 slapped tariffs of up to 35.3 percent on EVs imported from China after an anti-subsidy probe concluded that the country's support undercut European automakers.

The document said, however, any "offer must be adequate to eliminate the injurious effects of the subsidies and provide equivalent effect to duties".

The document "is intended to provide guidance to Chinese exporters who may be considering submitting price undertaking offers" for electric vehicles "currently subject to countervailing duties", EU trade spokesman Olof Gill said.

China's commerce ministry welcomed the development.

"The progress fully reflects the spirit of dialogue and the outcomes of consultations between China and the EU," the Chinese commerce ministry said.

"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," it added in a statement.

The Chinese Chamber of Commerce to the EU said in a statement it "highly commends the positive outcome achieved through dialogue and consultations".

The move "has enabled a soft landing in the electric vehicle case", it added.

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