A representative of China's Ministry of Commerce announced on Monday that the consensus reached between China and the European Union (EU) regarding the trade of hybrid and electric vehicles helped prevent the escalation of trade tensions.
These statements were made in response to speculation by some foreign media outlets about the details of the trade agreements, particularly concerning hybrid cars, following the recent meeting of the trade and investment consultation mechanism between China and the EU in Beijing.
The representative emphasized that China and the EU have maintained continuous dialogue within this mechanism and have reached several agreements, which has contributed to maintaining stable and balanced relations between these two key trading partners.
Guided by the principles of mutual respect and equal consultation, both sides conducted intensive negotiations on the trade of hybrid and electric vehicles, balancing economic and trade differences as well as each other's concerns.
Regarding hybrid vehicles, the parties confirmed and highlighted three fundamental principles: factual respect, non-discrimination, and adherence to World Trade Organization (WTO) rules.
Citing Eurostat data, the representative noted that in 2024, the EU imported 107,000 hybrid vehicles from China, and 302,000 in 2025.
Based on the 2025 level, the parties agreed on conditions allowing for increased supply volumes, enabling Chinese enterprises to maintain exports and achieve sustainable growth, while taking into account the legitimate concerns of industries on both sides based on actual conditions.
In accordance with the principle of non-discrimination, no measures will be specifically targeted against Chinese products or discriminate against Chinese enterprises. The representative clarified that the quota allocated to China will not be lower than that provided by the EU to any other source of import.
Furthermore, the parties confirmed that the trade agreement must comply with WTO rules. The representative stated that China retains all its rights under the WTO system, including the right to appeal to the dispute settlement body and demand trade compensation.
Concerning electric vehicles, the representative reported that China and the EU achieved a 'soft landing' in the EU's anti-dumping case in January of this year, when the bloc issued a general guideline on price commitments.
He added that the EU will continue to promote relevant procedures concerning the price commitments of companies involved in the case, as well as other review procedures.
The representative stressed that the consensus reached, based on reciprocity and mutual benefit, has effectively protected the interests of Chinese enterprises, prevented the escalation of trade tensions between China and the EU, and created a stable, predictable, and sustainable environment for bilateral trade and investment, promoting stable, balanced, and healthy development of economic and trade relations between China and the EU.