China and EU Confirm Principles for Hybrid Car Trade, Continue Electric Vehicle Talks
China and the European Union have confirmed three core principles for trade in hybrid vehicles, aiming to avoid discriminatory practices against Chinese companies and ensure compliance with WTO rules.
A spokesperson for China's Ministry of Commerce announced on October 12 that China and the European Union have reached an understanding on trade concerning hybrid vehicles. The agreement emphasizes that trade arrangements must respect facts, be non-discriminatory, and comply with World Trade Organization (WTO) rules.
The principles confirmed include: first, acknowledging factual data, with arrangements made on top of 2025 export figures to ensure space and stable growth for Chinese companies. The EU imported 107,000 hybrid cars from China in 2024, with projections of 302,000 for 2025.
Second, any measures will not specifically target Chinese products or discriminate against Chinese enterprises. Quotas for China will not be lower than those for any other import source. Third, all trade arrangements must conform to WTO rules, and China reserves the right to pursue dispute settlement and seek trade compensation within the WTO framework.
Regarding electric vehicles, parties have agreed to continue ongoing company-specific price commitment procedures and other review processes, which began with an "amicable landing" in January. This understanding supports the actual interests of Chinese companies and averts an escalation of trade friction between China and the EU.
These principles form a solid foundation for safeguarding the legitimate rights of Chinese enterprises and fostering a stable, predictable, and sustainable trade and investment environment between China and the EU.