China-EU Hybrid Talks Take Shape: Beijing Says Its EU Quota Will Match Others and Rise From 2025 Base (Follow-up)
China's commerce ministry on Monday said China and the EU had held "intensive consultations" on hybrid and electric vehicle trade and on balancing bilateral trade concerns, laying out three arrangements for a hybrid-car export quota mechanism — Beijing's version of the implementation details for last week's EU-announced "shared understanding."
Under the arrangements announced by China's commerce ministry: first, the hybrid export quota allocated to China will not be lower than quotas allocated to other import sources; second, EU measures must not specifically target Chinese products or discriminate against Chinese firms; third, both sides agreed to increase hybrid export quotas based on 2025 figures, to ensure opportunities and stable growth for Chinese enterprises.
The statement contrasts with the EU's framing on October 9, when Trade Commissioner Maros Sefcovic, after two days of talks in Beijing with Commerce Minister Wang Wentao and other officials, announced a "shared understanding" under which China would moderate hybrid and plug-in hybrid exports to Europe — potentially cutting them by more than half over four years, amounting to millions of vehicles — alongside improved EU access to China's market and eased Chinese rare-earth export licensing. No implementation details were given at the time, and EU leaders are set to discuss the outcome at Thursday's Brussels summit.
The same arrangement, framed differently: Brussels emphasizes "slowdown and reduction," Beijing emphasizes "quota fairness and a higher base" — the final numbers await the quota mechanism's specific text.
The broader backdrop is the EU's anti-subsidy duties on Chinese-made battery-electric vehicles in place since October 2024 (levied on top of the 10% base tariff, varying by automaker up to 35.3%), plus long-running talks on "price undertakings" as an alternative to tariffs. This round of details focuses on hybrids; the core dispute over EV tariffs remains unresolved. China is the world's largest EV producer, and Europe is the most important overseas market for Chinese automakers — the quota mechanism's direction will directly shape BYD, SAIC and Geely's European plans, and is seen as a bellwether for Chinese automakers' future prospects in North America.
Sources: Reuters, October 12, 2026 (via The Business Standard); GSM published the EU-side version on October 10.
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Published by GSM · USA (original Chinese edition)
Photo: 欧盟委员会总部 Berlaymont 大楼（布鲁塞尔），CC BY 4.0（Wikimedia Commons）
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