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China, EU Set Three Principles for Hybrid and EV Trade Consultations

   2026-10-13 China News ReportCNBOAT00

China's Ministry of Commerce (MOFCOM) spokesperson outlined three basic principles agreed in recent China-EU consultations on hybrid and electric vehicles at a press briefing on October 12, framing th...

China's Ministry of Commerce (MOFCOM) spokesperson outlined three basic principles agreed in recent China-EU consultations on hybrid and electric vehicles at a press briefing on October 12, framing them as a solid foundation for protecting the legitimate rights of Chinese enterprises.

On hybrid vehicles, both sides emphasized and confirmed three principles. First, respect for facts: according to Eurostat data, the EU imported 107,000 hybrid vehicles from China in 2024 and 302,000 in 2025, and the two sides reached an upward arrangement on the 2025 basis to ensure export space and stable growth for Chinese companies while accommodating the reasonable concerns of both industries. Second, non-discrimination: no measure will specifically target Chinese products, and Chinese exporters will receive quotas no lower than those granted to any other importing source. Third, compliance: both sides confirmed the trade arrangement must conform to World Trade Organization rules, with China reserving all rights to resort to WTO dispute settlement and demand trade compensation.

On electric vehicles, the spokesperson noted that the anti-subsidy case achieved a "soft landing" in January this year, when the EU published general guidance documents on price commitments. The EU will continue to advance company-level price commitment procedures for the EV case as well as other review procedures.

Analysts view the consensus as securing stable growth space for Chinese automakers' hybrid exports to Europe, while the EV track remains subject to ongoing procedural reviews. The principles are seen as a signal that both sides intend to manage trade frictions through consultation rather than escalation.

 
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