China and the European Union have agreed to restart negotiations on trade issues, focusing on electric vehicle (EV) tariffs, with talks scheduled to resume in 2025, according to a joint statement released on Thursday.

The decision follows a series of high-level discussions between Chinese and EU officials, aiming to address tensions over trade barriers and subsidies.

According to Reuters, both sides expressed a commitment to finding “mutually acceptable solutions” to avoid escalating tariffs on EVs, which could impact bilateral trade.

The EU has been scrutinizing China’s EV industry, citing concerns over state subsidies that allegedly give Chinese manufacturers an unfair advantage.

In response, China has urged the EU to reconsider its tariff policies, warning of potential retaliatory measures.

The upcoming talks will build on previous dialogues, with both parties agreeing to establish a working group to prepare for the 2025 negotiations.

The group will focus on data sharing and transparency to address subsidy-related disputes.

This development comes amid growing global demand for EVs, with Europe and China being key players in the sector.

The outcome of these talks could significantly influence the global EV market and trade relations between the two economic powers.