Q: Recently, under the China-EU Trade and Investment Consultations (TIC), China and the EU held in-depth discussions on trade in hybrid vehicles and BEVs, avoiding escalation of the situation. Some foreign media outlets have speculated about the details of the hybrid vehicle trade arrangement, including the quantities involved. What is China’s comment on this? A: China and the EU have maintained dialogue under the TIC and reached multiple deliverables and understandings. This is conducive to maintaining a stable and balanced key trading partnership. Following the principles of mutual respect and equal consultation, the two sides held intensive consultations on trade in hybrid vehicles and BEVs, and handled economic and trade differences and each other’s concerns in a balanced manner. On hybrid vehicles, the two sides emphasized and confirmed three basic principles. The first is respect for facts. According to Eurostat data, the EU imported 107,000 hybrid vehicles from China in 2024 and 302,000 in 2025. The two sides reached an upward arrangement that provides for upward adjustion on the basis of 2025 figures, ensuring room for exports and stable growth for Chinese enterprises and accommodating the reasonable industry concerns of the two sides in light of actual conditions. The second is non-discrimination. No measure will specifically target Chinese products, still less will any measure discriminate against Chinese enterprises. The quota granted to China will not be lower than the quota for any other source of imports into the EU. The third is compliance. The two sides confirmed that the trade arrangement should comply with WTO rules. China reserves all rights under the WTO framework, including the right to resort to dispute settlement and to seek trade compensation. These three basic principles have been applied throughout the entire process and constitute a solid foundation for safeguarding the legitimate rights and interests of Chinese enterprises.

On BEVs, China and the EU achieved a soft landing in the anti-subsidy case in January this year, and the EU issued the guidance document on price undertakings. In this connection, the EU will continue to advance the procedures related to corporate price undertakings in the BEV case, as well as other review procedures.

On the basis of reciprocity and mutual benefit, the above-mentioned understandings have effectively safeguarded the practical interests of Chinese enterprises, avoided escalation of China-EU trade frictions, and provided a stable, predictable and sustainable trade and investment environment for the both sides, contributing to the stable, balanced and sound development of bilateral economic and trade relations. (Released on October 12)