China and EU Agree on Hybrid Vehicle Trade Within WTO Rules

China and the European Union have reached an understanding regarding trade in hybrid vehicles, confirming the agreement aligns with World Trade Organization (WTO) rules. The announcement came following trade and investment consultations in Beijing between China's Minister of Commerce Wang Wentao and EU Commissioner for Trade and Economic Security Maroš Šefčovič.

The consultations also covered exploring possibilities for reducing tariffs on certain goods and enhancing the predictability and stability of global supply chains. China expressed willingness to facilitate exports of rare earths and permanent magnets to the EU through a "green channel" mechanism.

Discussions also touched upon ongoing procedures related to anti-subsidy investigations on electric vehicles, including price commitments and review processes. Both sides acknowledged the importance of secure and reliable supply chains.

The next round of consultations is scheduled for March 2027, with a ministerial video conference planned for January 2027 to maintain communication.