From EVs to steel, how China’s price-setting deals are easing trade tensions

China and South Korea have resolved a trade dispute over hot-rolled steel coils through a price-undertaking deal, mirroring the solution used in China’s electric vehicle (EV) stand-off with the European Union.Analysts say the deal, which will see exporters raise export prices to avoid anti‑dumping duties, could avert punitive tariffs and safeguard market access for Chinese exports.The China Iron and Steel Association said in a statement issued on Thursday night that it “welcomed and supported” the use of a price-undertaking agreement to resolve an anti-dumping case initiated by South Korea last March.John Gong, a professor of economics at the University of International Business and Economics in Beijing, said: “Price undertaking could be a good solution when China faces significant pressure as a manufacturing and export powerhouse in the current global trade environment.”He said such deals allowed the price premium to stay with exporting companies rather than being captured as punitive duties by importing countries.China’s Ministry of Commerce also welcomed the “soft landing” in the dispute earlier in the week, noting that substituting anti-dumping duties with price commitments served the industrial interests of both nations. It said the deal would enhance the stability and predictability of the bilateral steel trade.