EU’s China EV price-floor plan lifts BYD and Xpeng — tariff fight may be shifting
Shares of China’s BYD climbed up to 4.8% in Hong Kong on Tuesday. Xpeng jumped 5.3%, while SAIC Motor added 3.6%, following news that the European Commission is considering a minimum-price system to replace tariffs on China-built electric vehicles. This pricing mechanism would also cover EVs made in China by foreign automakers. Eugene Hsiao from Macquarie Capital described the move as “positive for developing better ties” between the EU and Chinese carmakers. The clash over electric-vehicle pricing has escalated into a key trade battle between Beijing and Brussels. Investors are paying close attention, since a settled price floor offers more predictability than a tariff slapped on imports repeatedly at the border.