Trade relations: Hybrid export dispute with the EU - China speaks of agreement

Beijing. According to Beijing, China and the EU have reached an agreement in the dispute over Chinese hybrid car exports to Europe. The Chinese Ministry of Commerce in Beijing announced that both sides had reached an agreement after intensive discussions. The agreement is in line with the rules of the World Trade Organization (WTO).

No further details were provided in the authority's 16-point results paper. EU Trade Commissioner Maros Sefcovic and China's Trade Minister Wang Wentao had previously spoken to each other in Beijing. The ongoing dispute over hybrid cars was on the agenda.

Diplomats had previously said that China had until recently rejected calls to voluntarily limit its sharply increased exports of hybrid cars. The EU was therefore considering introducing a temporary protective measure that would restrict Chinese hybrid imports through import quotas and high tariffs for deliveries beyond this limit.

According to Chinese sources, Beijing and Brussels emphasized the need to intensify exchanges regarding export controls. China agreed to facilitate rare earth export licenses through the so-called green channel. In return, the EU wants to accommodate China in the area of ​​licenses for so-called dual-use goods. These are goods that can be used for civil as well as military purposes.

The EU's enormous trade deficit with China may also have been in focus during the talks. In 2025, the EU imported goods worth around 360 billion euros more from China than it exported there. The flood of exports from the People's Republic worries politicians and large parts of industry in Europe. The background is that demand in China is too weak for the existing supply. The result is that companies offer their goods abroad at low prices.

Brussels accuses Beijing of using state subsidies to ensure unfair competition. China, on the other hand, warns against protectionist measures by the EU. In the event that China as a whole does not give in to the trade conflict, Germany and France in particular are pushing for more decisive action against Chinese imports in view of the growing damage to European industry. Among other things, they are calling for a new instrument that could quickly restrict access to the EU market for certain products.