China's Ministry of Commerce introduces China-EU consultation consensus on hybrid and electric vehicles

China News Service, Beijing, October 12 (Reporter Yin Qianyun) When answering reporters' questions on the China-EU consultation consensus on hybrid and electric vehicles on the 12th, a spokesperson for the Chinese Ministry of Commerce said that regarding hybrid vehicles, the two sides emphasized and confirmed three basic principles; regarding electric vehicles, the European side will continue to promote the procedures related to enterprise price commitments in the electric vehicle case, as well as other review procedures.

A reporter asked that day that China and the EU have recently held in-depth discussions on hybrid and electric vehicle trade under the trade and investment consultation mechanism to avoid escalating the situation. Some foreign media have speculated on the number and other relevant details of hybrid vehicle trade arrangements. What is China’s comment?

The spokesperson said that China and the EU have continued dialogue under the trade and investment consultation mechanism and reached consensus on a number of outcomes, which is conducive to maintaining a stable and balanced China-EU key trading partnership. Based on the principles of mutual respect and equal consultation, the two sides conducted intensive consultations on the trade of hybrid vehicles and electric vehicles, and dealt with economic and trade differences and mutual concerns in a balanced manner.

The spokesperson said that regarding hybrid vehicles, both parties emphasized and confirmed three basic principles. First, respect the facts. According to Eurostat data, the EU will import 107,000 hybrid vehicles from China in 2024 and 302,000 vehicles in 2025. The two sides reached an upward arrangement on the basis of 2025 to ensure the export space and stable growth of Chinese enterprises and take into account the reasonable concerns of the industries on both sides based on reality.

The second is non-discrimination. Any measures will not specifically target Chinese products, let alone treat Chinese companies in a discriminatory manner. The quota obtained by China will not be lower than that of any other European import source. The third is compliance. Both sides confirm that trade arrangements should be consistent with WTO rules. China reserves all rights to resort to dispute settlement and demand trade compensation within the framework of the WTO. These three basic principles run throughout and are a solid foundation for protecting the legitimate rights and interests of Chinese enterprises.

Regarding electric vehicles, China and the EU achieved a "soft landing" in the anti-subsidy case in January this year, and the EU issued a general guidance document on price commitments. In this regard, the European side will continue to promote the procedures related to enterprise price commitments in the electric vehicle case, as well as other review procedures.

The spokesman said that on the basis of reciprocity and mutual benefit, the above-mentioned consensus has effectively safeguarded the actual interests of Chinese enterprises, avoided the escalation of China-EU trade frictions, and provided a stable, predictable and sustainable trade and investment environment for China and Europe, which is conducive to the stable, balanced and healthy development of bilateral economic and trade relations.