China announced a deal with the European Union to ensure "export space and steady growth" for its companies, seeking to reduce trade war risk. The agreement, based on 2025 hybrid vehicle sales levels, grants China a quota no lower than other EU suppliers. This follows talks between Commerce Minister Wang Wentao and EU Trade Commissioner Maros Sefcovic in Beijing.
EU figures show imports rose to 302,000 units last year from 107,000 in 2024. A joint statement referred to "an understanding on trade in hybrid vehicles in a WTO compliant manner." Bloomberg reported the EU will cap Chinese hybrid imports at 350,000 cars annually, effective Dec. 1, though China did not confirm the figure. The ministry states any arrangement must conform to WTO rules, with China reserving all rights under the framework.
Commissioner Sefcovic noted the arrangement could cut China's exports by more than half. The consensus aims to safeguard Chinese enterprise interests and prevent escalation of China-EU trade frictions.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing