On 9 October 2026, the European Union and China announced that they had reached a mutual understanding on hybrid vehicle trade. The announcement came from Beijing, where European Commission Trade Commissioner Maros Sefcovic briefed journalists on the outcome of intensive consultations between the two sides. The statement was issued jointly by the European Commission and the Chinese Ministry of Commerce, signalling that both parties wanted to avoid a broader trade conflict over automobile exports.
According to the joint announcement, the agreement will more than halve the volume of EU imports of Chinese hybrid and plug‑in hybrid vehicles. The two sides emphasized that their understanding is fully aligned with World Trade Organization rules, a point they repeated in the official statement. The quote released by the Commission and the Ministry read, in translation: "After intensive consultations, both sides have reached an understanding on trade in hybrid vehicles in accordance with WTO rules." Both sides stressed that the agreement conforms to WTO regulations.
While the core of the deal concerns hybrid vehicles, EU officials also indicated that they had hinted at a possible compromise regarding tariffs on electric cars. The agreement is not yet final; it will be submitted to the heads of state of the European Union’s member countries for a final decision on whether to accept the compromise with China.
Both China and the European Union have taken a supportive stance toward the outcome.
Both China and the European Union have taken a supportive stance toward the outcome. The next step now lies with the EU’s political leadership, which must review the deal and decide whether to endorse it. The agreement will be submitted to the EU heads of state for a final decision on whether to accept the compromise with China.