China said a deal with the European Union on hybrid cars will ensure “export space and steady growth” for its companies, as the two sides seek to reduce the risk of trade war.
The two sides agreed on an “upward arrangement” based on the 2025 level of hybrid vehicles sold to the EU, a spokesperson for Beijing’s Commerce Ministry said in a statement Monday.
The ministry cited EU figures showing the bloc imported 302,000 units last year, up from 107,000 in 2024. It said that under the new agreement China will have a quota that’s no lower than that granted to the EU’s other suppliers.
It’s the first time China has elaborated on the hybrid-car deal since last week’s talks in Beijing between Commerce Minister Wang Wentao and EU Trade Commissioner Maros Sefcovic. A joint statement afterwards referred to “an understanding on trade in hybrid vehicles in a WTO compliant manner” without offering details.
Bloomberg reported · Sunday that the EU will cap imports of Chinese hybrid vehicles at 350,000 cars per year, with the safeguard measure taking effect as soon as Dec. 1. The Chinese Commerce Ministry did not confirm that figure.
The ministry said any arrangement must conform to World Trade Organization rules, with China reserving all rights under the WTO framework, including requesting trade compensation.
“On the basis of reciprocity and mutual benefit, the above-mentioned consensus effectively safeguards the tangible interests of Chinese enterprises and prevents the escalation of China-EU trade frictions,” the spokesperson said.
Sefcovic told reporters on Friday that the two sides reached a shared understanding to “moderate China’s exports of hybrids and plug-in hybrids to the EU,” adding that the arrangement “opens the prospect of cutting China’s exports by more than a half.”