China and the EU have agreed to hold talks regarding import taxes on Chinese electric cars, potentially easing the risk of soaring prices in the EU. The negotiations come after the EU threatened China with tariffs of up to 38% due to alleged unfair subsidies for Chinese EVs. Despite some remaining frictions, both sides expressed willingness to further discuss the issue in a recent call between top officials. The EU emphasized the need to address injurious subsidization of Chinese EVs, while China accused the EU of protectionism and trade rule breaches. Both sides reiterated their positions and threats of legal action if necessary. The call marks the first step towards resolving the dispute, with ongoing engagement and discussions planned in the coming weeks to find a mutually agreeable solution.