China says it has reached understanding with EU on hybrid car trade
Trade Commissioner Maroš Šefčovič sought a Chinese commitment to curb plug-in hybrid exports and avoid defensive measures in Europe.
China’s Commerce Ministry said on 9 October 2026 that talks with the EU had produced an understanding on hybrid vehicle exports. The announcement followed a two-day visit to Beijing by EU Trade Commissioner Maroš Šefčovič.
The ministry said the understanding followed intensive consultations and was consistent with World Trade Organization rules. Šefčovič had been seeking a pledge to restrain Chinese plug-in hybrid exports, with the aim of avoiding defensive measures to protect Europe’s market.
Vehicles exported from China represented one in eight cars sold in the EU in August, driven mainly by rising hybrid sales. The European automotive industry, concentrated in Germany, has meanwhile been struggling, with Volkswagen and Mercedes-Benz announcing job cuts and plant closures.
The visit followed months of efforts to reduce the EU’s daily trade deficit of €1 billion with China. EU leaders are due to assess the outcome of the discussions at their next meeting in Brussels.
