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China-EU Hybrid/Electric Vehicle Trade Talks Reach Consensus

According to the Ministry of Commerce website on October 12, a spokesperson for the Ministry of Commerce answered reporters' questions regarding the consensus reached in discussions on hybrid and electric vehicles between China and Europe.

China-EU Hybrid/Electric Vehicle Trade Talks Reach Consensus

Recently, China and Europe have held in-depth discussions on the trade of hybrid vehicles and electric vehicles under the trade and investment consultation mechanism, avoiding an escalation of the situation. Some foreign media have speculated about details related to the number of arrangements for hybrid vehicle trade. What is China's comment on this?

: China and Europe have continued dialogue under the trade and investment consultation mechanism, reaching several consensus achievements, which is conducive to maintaining a stable and balanced key trade partnership between the two regions. Based on principles of mutual respect and equal negotiation, both sides have conducted intensive consultations on the trade of hybrid and electric vehicles, balancing economic and trade differences as well as mutual concerns.

Regarding hybrid vehicles, both parties emphasized and confirmed three basic principles. First, respect for facts. According to EU statistics, in 2024, the EU imported 107,000 hybrid vehicles from China, and in 2025, this number increased to 302,000. Second, non-discrimination. No measures will be targeted at Chinese products, nor will there be any discriminatory treatment of Chinese companies. The quota allocated to the Chinese side will not be lower than that for any other source of imports from Europe. Third, compliance with rules. Both parties confirmed that the trade arrangements must comply with WTO rules. The Chinese side reserves all rights, such as recourse to the WTO’s dispute settlement mechanism and demand for trade compensation, under the framework of the WTO. These three basic principles are fundamental and serve as a solid foundation for protecting the legitimate rights and interests of Chinese companies.

Regarding electric vehicles, the Chinese and European sides achieved a 'soft landing' in the countervailing case in January this year. The European side issued a general guidance document on price commitments. In this regard, the European side will continue to advance the procedures related to price commitments of companies involved in electric vehicle projects, as well as other review procedures.

On the basis of mutual benefit and cooperation, the above consensus effectively safeguarded the actual interests of Chinese enterprises. It prevented the escalation of trade disputes between China and Europe. It also provided a stable, predictable, and sustainable trade and investment environment for both sides, contributing to the stable, balanced, and healthy development of bilateral economic and trade relations.