China and EU Reach Hybrid Export Understanding

China and the European Union have reached an understanding on hybrid-vehicle exports, with Beijing saying Chinese companies will receive export opportunities no less favorable than those of other suppliers. A European safeguard measure reported separately would limit imports from China to 350,000 vehicles a year, but the two sides’ public descriptions differ on the cap’s implementation and timing. China’s commerce ministry said the agreement, reached after talks in Beijing last week, requires EU measures not to target Chinese products or discriminate against Chinese firms. The ministry also said hybrid exports would be adjusted upward based on 2025 figures to ensure export opportunities and stable growth for Chinese enterprises. It did not specify a numerical cap or start date in its account. A document outlining the EU measure was reported to set an annual limit of 350,000 Chinese hybrid vehicles for four years, with the quota rising 6% annually from the second year. The measure would formally apply to hybrid imports from all countries, while giving China a quota no lower than that of any other source.