China and EU reach hybrid-vehicle trade understanding

China and the European Union reached an understanding on trade in hybrid vehicles after two days of talks in Beijing on October 9, with the Chinese commerce ministry saying the arrangement would follow World Trade Organization rules. The announcement did not set out detailed terms, while EU Trade Commissioner Maroš Šefčovič said it could reduce Chinese hybrid exports to the bloc by more than half over the next four years. Šefčovič described the potential reduction as a first step toward addressing trade tensions, not a broader settlement. He said the change could mean several million fewer plug-in and battery-powered hybrid cars exported to the EU over four years. The ministry’s statement confirmed an understanding on hybrid-vehicle trade but did not specify a cap, baseline or implementation mechanism. The negotiations involved Šefčovič and Chinese Commerce Minister Wang Wentao. According to China’s commerce ministry, the two sides would follow procedures concerning company price undertakings for hybrid cars. The statement characterized their understanding as consistent with WTO rules.