For stock investors, reading authoritative, professional, timely and comprehensive analyst research reports helps uncover potential thematic opportunities. (Source: Jiemian News) Regarding the consensus reached by China and the EU on hybrid vehicle and electric vehicle trade under the trade and investment consultation mechanism, a spokesperson for the Ministry of Commerce said on October 12 that both sides, following the principles of mutual respect and equal consultation, avoided an escalation of the situation.
A reporter asked: recently, China and the EU held in-depth discussions on hybrid vehicle and electric vehicle trade under the trade and investment consultation mechanism, avoiding an escalation of the situation. Some foreign media have speculated about details such as the volume of hybrid vehicle trade arrangements. What is China's comment? In response, the MOFCOM spokesperson said that China and the EU have maintained dialogue under the trade and investment consultation mechanism and reached consensus on multiple outcomes, which is conducive to maintaining a stable and balanced key trade partnership between China and the EU. Both sides, following the principles of mutual respect and equal consultation, conducted intensive consultations on hybrid vehicle and electric vehicle trade, balancing economic and trade differences and each other's concerns.
The spokesperson said that regarding hybrid vehicles, both sides emphasized and confirmed three basic principles. First, respect facts. According to Eurostat data, the EU imported 107,000 hybrid vehicles from China in 2024 and 302,000 in 2025. Both sides reached an upward arrangement on the basis of 2025, ensuring export space and stable growth for Chinese enterprises and accommodating the reasonable concerns of both industries based on reality. Second, non-discrimination. No measure will specifically target Chinese products, still less discriminate against Chinese enterprises. The quota obtained by China will not be lower than that of any other source of imports for the EU. Third, compliance. Both sides confirmed that the trade arrangements should comply with WTO rules. China retains all rights, including resorting to dispute settlement and requesting trade compensation under the WTO framework. These three basic principles run throughout and are a solid foundation for safeguarding the legitimate rights and interests of Chinese enterprises.
The spokesperson also mentioned that regarding electric vehicles, China and the EU achieved a "soft landing" in the countervailing case in January this year, and the EU side issued general guidance documents on price undertakings. In this connection, the EU side will continue to advance procedures related to corporate price undertakings in the electric vehicle case, as well as other review procedures. The spokesperson said that on the basis of reciprocity and mutual benefit, the above consensus strongly safeguarded the practical interests of Chinese enterprises, avoided an escalation of China-EU trade friction, and also provided both sides with a stable, predictable and sustainable trade and investment environment, which helps the stable, balanced and healthy development of bilateral economic and trade relations.
The MOFCOM website published the joint statement and list of outcomes and consensus after China-EU consultations on the evening of October 9, describing the meeting as "pragmatic and productive." Both sides agreed to continue dialogue on market access issues and gradually promote the resolution of each other's concerns. China's auto exports were the focus before this round of consultations. The list of outcomes and consensus published by China shows that China and the EU reached an understanding on hybrid vehicle trade and will continue procedures related to corporate price undertakings and reviews in the electric vehicle countervailing case. China Customs data show that in 2025, China's exports of plug-in hybrid vehicles to Europe increased by 155% year on year, while exports of pure electric vehicles grew by 12% over the same period. Eurostat data show that in July 2026, the EU imported 50,408 plug-in hybrid vehicles from China, up 163.2% year on year. In the first four months of 2026, the EU's imports of hybrid vehicles from China reached 3.176 billion euros, surpassing pure electric vehicles' 2.808 billion euros for the first time.
The competitive pressure facing Europe's auto industry does not come only from import volumes. In 2025, the EU's exports of automobiles and parts to China fell 34% year on year to 16 billion euros, while its imports from China rose 8% year on year to 22 billion euros. Zhou Mi, a researcher at the Chinese Academy of International Trade and Economic Cooperation under the Ministry of Commerce, said in an interview with Cover News that pure electric vehicle tariffs failed to completely block Chinese cars from entering the European market, and hybrid vehicles have become a new growth point, putting pressure on the EU side. The EU's targeting of hybrid vehicles appears on the surface to be a trade deficit issue, but at a deeper level it reflects rising anxiety about industrial competitiveness. "Chinese hybrid vehicles have clear advantages in cost-effectiveness, technological maturity and market adaptability. European local automakers face greater competitive pressure during transformation, and some countries are therefore trying to use trade defense tools to win buffer space for local industries," Zhou Mi said in the interview.
Shi Xiaoli, a professor at the School of International Law at China University of Political Science and Law and director of the WTO Legal Research Center, said in an earlier interview with Global Times that the EU side's attempt to solve its own industrial difficulties through trade restrictions is essentially "treating internal illness with external remedies." The current pressure facing some European industries is closely related to structural factors such as high energy costs, insufficient investment, fragmentation of the internal market, weak innovation momentum and slow industrial transformation. Simply attributing these problems to competition from China, even if it can provide protection for some industries in the short term, cannot fundamentally improve the efficiency and innovation capacity of European industries.
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