Xinhua Finance, Beijing, October 12 — The Ministry of Commerce released information on October 12. Its spokesperson answered journalists’ questions on the consensus reached through China-EU consultations on trade in hybrid and battery electric vehicles.
Q: Recently, under the China-EU Trade and Investment Consultation Mechanism, China and the EU held in-depth talks on trade in hybrid and electric vehicles and prevented the situation from escalating. Several foreign media outlets have speculated on details such as the quota volume under the hybrid vehicle trade arrangement. What is China’s comment?
A: China and the EU maintain continuous dialogue via the Trade and Investment Consultation Mechanism and have reached a package of consensus, which helps sustain a stable and balanced key economic and trade partnership. Abiding by the principles of mutual respect and equal consultation, both sides held intensive rounds of negotiations on hybrid and electric vehicle trade to balance economic and trade differences as well as respective industrial concerns.
For hybrid vehicles, the two sides clarified and confirmed three fundamental principles. First, respect facts. Eurostat data shows the EU imported 107,000 hybrid vehicles from China in 2024 and 302,000 in 2025. The two parties agreed on an upward arrangement based on 2025 import figures to secure export space and steady growth for Chinese enterprises while accommodating reasonable practical concerns of industries on both sides. Second, non-discrimination. No measures will target Chinese products specifically, nor discriminate against Chinese firms. Quotas allocated to China will be no less than those granted to any other import source by the EU. Third, compliance. The trade arrangement shall conform to WTO rules. China reserves all rights under the WTO framework including initiating dispute settlement and claiming trade remedies. These three principles run through the whole negotiation and serve as a solid foundation protecting legitimate rights of Chinese automakers.
As for battery electric vehicles, the anti-subsidy case achieved a “soft landing” between China and the EU in January this year, and the EU issued general guidance documents on price undertakings. The EU will further advance follow-up procedures of corporate price undertakings and other review procedures under the electric vehicle case.
Built on reciprocity and mutual benefit, this consensus effectively protects the interests of Chinese enterprises, prevents escalation of China-EU trade frictions, and creates a stable, predictable and sustainable trade and investment environment for both sides. It contributes to stable, balanced and healthy development of bilateral economic and trade ties.