What happened On 12 February 2026, China's commerce ministry reversed its long-standing position and accepted that Chinese electric vehicle manufacturers could negotiate independently with the European Union on tariff arrangements. This was not a spontaneous act of goodwill. It followed a specific trigger: the European Commission had approved an exemption for Volkswagen's Cupra Tavascan SUV — a vehicle made in China — from EU EV tariffs. Other Chinese automakers watched that precedent land and immediately began eyeing bilateral deals of their own. The Commission has since published guidance for Chinese automakers seeking alternatives to countervailing duties through price undertaking offers. The criteria require minimum import price commitments, simple sales channel structures, and optional pledges for EU investment. The EU Chamber of Commerce in China welcomed the outcome as a 'soft landing' that sends a positive signal to global markets. For European founders and operators: do not read this as…