China has reportedly offered to sell EVs for a minimum of 30,000 euros in Europe, half the average price of EVs in the region

The Chinese government reportedly offered to sell EVs for a minimum of 30,000 euros in Europe to avoid possible tariffs implemented by the EU, but the proposal was still well below the average price of an EV in the region.

Instead, a divided EU voted in favor of implementing enhanced tariffs on Chinese EV imports, after the European Commission’s long-running investigation found evidence of state-backed anti-competitive subsidies.

Member States voted to introduce additional tariffs of up to 35.3% on Chinese-made EVs on top of existing duties, leading some car manufacturers to total tariffs of almost 50%. Germany and Hungary voted against the tariffs, fearing retaliation, while 12 other members, including Spain and Sweden, abstained.

As part of negotiations to avoid tariffs, the Chinese government has offered to set a minimum price of 30,000 euros for any EV sold in the EU, Reuters reported, citing three people familiar with the matter.

The EU said in September it rejected China’s offer to set a minimum price for EVs sold in the bloc, but did not disclose the exact conditions China offered.

“Our analysis focused on whether the offers would eliminate the harmful effects of subsidies and could be effectively monitored and enforced. The Commission concluded that none of the offers met these requirements,” a European Commission spokesperson said at the time.

According to studies by JATO Dynamics, the average price of an EV in Europe is 66,000 euros, meaning Chinese EVs would still sell for less than half the value of local rivals, according to the government’s proposal.

Chinese electric vehicle makers like BYD have gained market share in Europe in recent years at prices that European competitors have failed to come close to.

In addition to competitive advantages, including lower labor costs and control of the entire battery supply chain, China has been accused of supporting its car manufacturers with extensive subsidies.

European carmakers are drawing up plans to bring in their own low-cost models, with Volkwagen’s €20,000 entry-level EV expected to launch in 2027.

Meanwhile, European manufacturers sought to ward off the threat from Chinese competitors through supply agreements. Volkswagen bought a $700 million stake in Chinese manufacturer Xpeng last year.

These partnerships, combined with a growing dependence on the Chinese consumer market, are considered the main motivation for Germany to vote against the tariffs. The country, alongside Hungary, is also worried about triggering a trade war with China.

After the vote, German Finance Minister Christian Lindner urged European Commission President Ursula Von Der Leyen not to trigger a “trade war” with China. The European Commission has the final say on whether it will implement tariffs after obtaining authorization from EU member states.

China has begun retaliating against EU countries with retaliatory tariffs on imports from the bloc. The country has launched anti-dumping investigations into everything from European pork to regional blue cheese.

This story was originally featured on Fortune.com