Business · Trade · 2 days ago
China and EU reach understanding on hybrid car trade
China and the European Union say they have reached an understanding on trade in hybrid cars after talks in Beijing.
The discussions involved EU trade commissioner Maroš Šefčovič and Chinese officials, including trade minister Wang Wentao.
The specific terms have not been made public, and the sides’ descriptions differ on whether the understanding also covers electric cars.
The issue grew after the EU imposed extra duties on Chinese battery-only electric cars in 2024, while hybrids were not covered by those measures.
Chinese hybrid car imports into Europe have since risen, according to figures cited in the coverage.
Šefčovič said the understanding could reduce Chinese hybrid and plug-in hybrid exports to the EU by more than half, but how that would work is not known.
China and the EU will continue discussing price commitments and EU reviews of Chinese electric cars.
The European Commission plans to present the results to EU leaders at a summit in Brussels on October 15 and 16.
China and the European Union announced an understanding on trade in hybrid vehicles after talks in Beijing on Friday.
Chinese officials said the agreement followed intensive negotiations and complied with World Trade Organization rules.
The parties have not published the detailed terms, and reports differ on whether the understanding also covers electric cars.
EU Trade Commissioner Maroš Šefčovič said Chinese hybrid and plug-in hybrid exports to the EU could fall by more than half.
The sides also agreed to continue talks on EU measures involving Chinese electric cars and on export controls.
- Who
- China and the European Union, represented in the talks by Chinese Commerce Minister Wang Wentao and EU Trade Commissioner Maroš Šefčovič.
- What
- They announced an understanding on trade in hybrid vehicles. The terms have not been published.
- When
- Friday, October 9, 2026.
- Where
- Beijing.
- Why
- The EU had sought to curb Chinese hybrid exports after its trade measures on battery-electric cars did not cover hybrids. The sources also cite continuing disagreements over trade measures on Chinese electric cars.
EU
China
Hybrid exports
EU
The EU had pressed for measures to curb Chinese hybrid exports.
China
China had rejected a voluntary reduction in some exports.
Chinese exports of hybrid and plug-in hybrid vehicles to the EU could fall by more than half
China is ready to continue facilitating the approval of export licences for rare earths and permanent magnets for the EU
The EU began imposing additional duties on battery-electric cars from China.
The European Commission published guidance on price undertakings as an alternative to additional duties on battery-electric cars.
China and the EU announced an understanding on hybrid vehicle trade after talks in Beijing.
The published list of outcomes and work assignments says the talks are to continue.
- Talks
- Beijing, Friday, October 9, 2026
- Participants
- Wang Wentao and Maroš Šefčovič
- Potential export change
- More than half, according to Šefčovič
- Next talks
- March 2027
- EU battery-electric car duties
- 7.8% to 35.3%, in addition to the usual 10% import duty
Sources
Related news
Trade Republic revenue topped €750 million in 2024/25
Dax companies face more than €100 billion in refinancing by end of 2027
Deutsche Bank chief urges Germany to speed up reforms
Germany will overhaul 13 major rail routes by 2031, down from 21
Volkswagen chief calls for European support as automaker restructures
China agrees to reduce hybrid car exports to the EU
Volkswagen faces €1.2 million fine over 2023 forecast disclosure
Volkswagen chief urges Brussels to improve conditions for European industry
Volkswagen plans to extend Spain’s shared-platform model across Europe
Porsche deliveries fall 16% as China sales drop and 911 grows
Sales at Shein, Temu and AliExpress fall 35.5% in Germany
