China and the European Union have reached a preliminary understanding that could reduce Chinese exports of hybrid and plug-in hybrid cars to the bloc by roughly half, EU Trade Commissioner Maroš Šefčovič said Friday after two days of talks in Beijing.
The agreement is a first step, not an implemented quota. Reuters reported that the shared understanding is meant to “moderate” those exports and could reduce imports by several million vehicles over four years. Neither side disclosed the mechanism or a detailed timetable, and EU leaders still need to discuss the proposal.
A fast-growing category
The talks followed a sharp rise in Chinese plug-in hybrid sales in Europe. EU imports of plug-in hybrids increased 86% in the year through September while average prices fell 20%, according to Reuters. More than half of those vehicles now come from China, compared with 30% of the value of EU plug-in hybrid imports in 2025.
China's Commerce Ministry described the talks between Šefčovič and Commerce Minister Wang Wentao as pragmatic and productive. The ministry said the understanding would comply with World Trade Organization rules and that negotiations would continue over price undertakings and the EU's anti-subsidy review of Chinese electric vehicles.
