Positive Outcomes in China-Europe Electric Vehicle Anti-Subsidy Negotiations; National Used Car Transaction Volume to Exceed 20 Million by 2025

1. China Automobile Circulation Association: Used Car Transactions to Exceed 20 Million Units by 2025

On January 13, the China Automobile Circulation Association released data indicating that from January to December 2025, the cumulative transaction volume of used cars is expected to reach 20.108 million units, marking a year-on-year growth of 2.52%. The total transaction value is projected to be 1.28979 trillion yuan. With the continuous increase in the number of new energy vehicles in the country, the annual transaction volume of used new energy vehicles is anticipated to hit 1.6 million units, accounting for 7.9% of the total annual transactions, which is an increase of 2.2 percentage points compared to the previous year.

Commentary: The China Automobile Circulation Association attributes the rapid growth of the used new energy vehicle market to strong policy support, the trend of shifting consumer preferences towards green and low-carbon options, and the continuous emergence of innovative business models within the industry.

2. National Development and Reform Commission: Comprehensive Management Measures for New Energy Vehicle Power Batteries to Be Introduced

According to reports from People’s Daily Finance on January 13, the State Council held a regular press conference to introduce details about the Comprehensive Solid Waste Governance Action Plan. Zhou Haibing, Deputy Director of the National Development and Reform Commission (NDRC), stated that the action plan clarifies the responsibilities of the government and enterprises, emphasizing the principle of “whoever pollutes, whoever governs.” This initiative aims to prevent scenarios where companies profit while leaving pollution for the government and the public to address. The NDRC will collaborate with relevant departments to enhance supporting systems and introduce comprehensive management measures for the recycling of new energy vehicle power batteries, revise the industrial structure adjustment guidance catalog, and strengthen restrictions on outdated processes and equipment.

Commentary: The upcoming comprehensive management measures for power batteries directly target the pollution issue of “companies profiting while the public pays.” By clarifying the responsibilities of government and enterprises and reinforcing the elimination of outdated processes, these measures will address regulatory gaps in recycling and provide a solid policy foundation for the green and circular development of the new energy vehicle industry.

3. Jiangsu: Accelerating the Application of Autonomous Driving in Industry

On January 13, reports from People’s Daily Finance revealed that Jiangsu Province recently issued the “Artificial Intelligence + Action Plan”, which includes initiatives to accelerate the application of autonomous driving in the industry. This plan focuses on speeding up the research and deployment of large models in driver assistance and autonomous driving systems, developing a data-driven algorithm system for the entire process, and promoting the development of smart cabins suited for advanced autonomous driving. Additionally, it aims to explore the establishment of an innovative platform for intelligent autonomous driving and the construction of smart roadside infrastructure to achieve networked identification of all traffic facilities and the operation of autonomous driving modes within designated areas.

Commentary: Jiangsu’s adoption of the “Artificial Intelligence +” action plan emphasizes technology development and practical implementation, laying a strong foundation for the commercialization of autonomous driving. This initiative is expected to accelerate the maturity of the smart transportation ecosystem and provide a replicable policy and model for the entire country.

4. Positive Results in China-Europe Electric Vehicle Anti-Subsidy Negotiations

On January 12, the China Association of Automobile Manufacturers announced that significant progress has been made in the negotiations regarding the anti-subsidy case for electric vehicles between China and Europe. The statement noted that both parties adhered to the principle of mutual respect and achieved important positive outcomes through continuous dialogue and multiple rounds of negotiations, facilitating a “soft landing” for the electric vehicle case. The European Commission has issued guidelines for submitting price commitment applications, clarifying that the European side will adhere to the principles of non-discrimination, objectivity, and fairness in evaluating price commitment applications submitted by Chinese export vehicle companies. Eligible companies will be able to replace anti-subsidy tariffs with price commitments.

Commentary: The resolution of the China-Europe electric vehicle anti-subsidy case through price commitments represents a model of dispute resolution under multilateral trade rules. The statement from the China Automobile Association not only reflects industry consensus but also sends a positive signal of cooperation replacing confrontation, aiming to maintain stability in the industrial chain.

Disclaimer: The content and data provided in this article are for reference only and do not constitute investment advice. Please verify before use and assume risks accordingly.