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China Demands Fair Treatment for Hybrid Exports Under EU Trade Deal

Following high-level talks between Commerce Minister Wang Wentao and EU Trade Commissioner Maros Sefcovic, Beijing is insisting that any new trade arrangement for hybrid vehicles must remain non-discriminatory. China warns it will pursue formal WTO dispute resolution if the bloc’s terms fail to align with international fair competition standards.

China Demands Fair Treatment for Hybrid Exports Under EU Trade Deal

The ministry’s statement follows an October 8-9 summit in Beijing, where officials reached a preliminary understanding on managing the influx of Chinese vehicles. While Beijing maintains that the deal preserves growth potential, the figures reveal a sharp point of contention: EU import data shows Chinese hybrid volume surged from 107,000 units in 2024 to 302,000 in 2025. Conversely, Sefcovic indicated that Beijing has agreed to slash these exports to the bloc by more than half.

Beijing’s insistence on a quota no lower than that granted to other global partners underscores a broader resistance to the EU’s proposed safeguard measures. Previously, the bloc had explored restrictive import quotas to address the rapid rise in market share. Beyond the hybrid sector, the ministry confirmed that negotiations continue regarding the separate anti-subsidy case involving Chinese electric vehicles, with both sides working toward price undertakings to resolve the ongoing trade friction.

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