China details consensus with EU on hybrid, EV trade

The consensus reached between China and the European Union (EU) on hybrid and electric vehicle trade has helped prevent an escalation of trade frictions, a spokesperson for China's Ministry of Commerce said on Monday.

The spokesperson made the remarks in response to speculation by some foreign media outlets over details of the trade arrangements, particularly those concerning hybrid vehicles, following the latest meeting of the China-EU trade and investment consultation mechanism in Beijing.

The spokesperson said China and the EU had engaged in sustained dialogue under the mechanism and reached consensus on a number of outcomes, helping maintain a stable and balanced relationship between these two key trading partners.

Guided by the principles of mutual respect and equal consultation, the two sides held intensive talks on hybrid and electric vehicle trade, addressing economic and trade differences and each other's concerns in a balanced manner, the spokesperson noted.

Regarding hybrid vehicles, the two sides emphasized and confirmed three basic principles: respect for facts, non-discrimination and compliance with World Trade Organization (WTO) rules.

Citing Eurostat data, the spokesperson said the EU imported 107,000 hybrid vehicles from China in 2024 and 302,000 in 2025.

Building on the 2025 level, the two sides reached an arrangement allowing for further increases, ensuring room for Chinese enterprises to maintain exports and achieve steady growth while taking into account the legitimate concerns of industries on both sides based on actual conditions, the spokesperson said.

Under the principle of non-discrimination, no measures will specifically target Chinese products, let alone discriminate against Chinese enterprises.

The quota allocated to China will be no lower than that granted by the EU to any other source of imports, according to the spokesperson.

The two sides also confirmed that the trade arrangement should comply with WTO rules.

China reserves all its rights under the WTO framework, including the right to resort to dispute settlement and seek trade compensation, the spokesperson said.

Regarding electric vehicles, the spokesperson said China and the EU achieved a "soft landing" in the EU's anti-subsidy case in January this year, with the bloc issuing a general guidance document on price undertakings.

The EU will continue to advance relevant procedures concerning price undertakings by companies involved in the case, as well as other review procedures, the spokesperson added.