New Delhi, Jan. 13 -- After protracted negotiations over Chinese electric vehicle subsidies and punitive tariffs, Brussels and Beijing agree on structured price undertakings to ease trade tensions and reshape global auto markets.

In a development set to reshape global automotive markets, China and the European Union have reached a landmark agreement on electric vehicle (EV) pricing, replacing previously threatened punitive tariffs with a minimum price framework. The deal comes after months of tense negotiations, reflecting growing economic frictions between the West and China over technology, subsidies, and market access. China and EU reach deal on electric vehicle tariffs after lengthy talks that drew global attention.

For years, the E...