According to Bloomberg's report on October 14, sources familiar with the matter said that Germany will encourage the EU to adopt similar import quotas for hybrid vehicles, and quickly implement quota management for more categories of goods imported from China.
Sources familiar with the matter said that Germany plans to urge the EU to introduce trade safeguard measures, restricting the import of Chinese goods in more fields such as chemicals and mechanical engineering, possibly also including the pharmaceutical industry. Such safeguard measures allow the EU to impose import restrictions when imports of certain products surge.
A source who declined to be named said that the German government will urge the European Commission, which is responsible for EU trade affairs, to present a proposal by the end of the year.
The German Chancellor's office has not responded to requests for comment.
On October 15th, local time, leaders from EU countries will meet in Brussels to discuss the issue of the EU's trade deficit with China. In September this year, the EU's trade deficit with China reached a record level of $34.8 billion.
Reports indicate that various parties will discuss measures to prevent a large influx of Chinese goods into Europe and disrupt local industries. The scope of related measures may be much broader than the restrictions on hybrid vehicles.
Last week, there were positive developments in China-EU economic and trade relations, with both sides reaching a consensus on issues such as the trade of hybrid vehicles.
Two EU officials revealed that the related arrangements may set the import volume for 2027 at 350,000 units, with a subsequent annual increase of 6% over the next three years. However, these specific figures have not yet been publicly confirmed by the Chinese side.
Several officials said that the German government welcomes this agreement, considering it a positive sign and in the right direction. However, Berlin believes that this hybrid car agreement is only the first step in addressing the trade deficit between Europe and China.
On October 13 local time, Valdis Dombrovskis, commissioner for economic affairs of the European Commission, stated that the EU's agreement to reduce imports of hybrid cars from China is "just the first step". The so-called "trade asymmetry" extends beyond the automotive industry; "we need to continue this work in other different industries as well."
German Chancellor Merz and French President Macron are working to reach a political consensus among EU leaders, authorizing the European Commission to develop stricter trade measures. EU officials say that the two will discuss a package of measures during the summit break to support the struggling automotive industry in the EU.
Sources familiar with the matter revealed that the general framework of the compromise plan is as follows: France will make concessions to Germany regarding the timeline for phasing out internal combustion engines. In exchange, Germany will ease its opposition to the clause regarding the purchase of products from European countries.
An official said that it is very likely that the leaders of both countries will announce an agreement during the EU summit in Brussels later this week.
On October 12, the Ministry of Commerce of China provided further explanations regarding the outcomes of the consultations. It emphasized that both parties have agreed on three fundamental principles for the trade of hybrid vehicles: respect for facts, non-discrimination, and compliance with the rules of the World Trade Organization.
The Ministry of Commerce pointed out that, according to EU statistics agencies, the EU imported 107,000 hybrid vehicles from China in 2024, and this number increased to 302,000 units in 2025. The two parties reached an agreement to “increase the quota” based on 2025, in order to ensure a stable growth in the export opportunities for Chinese enterprises.
The Chinese side also emphasized that no measures should be targeted specifically at Chinese products, and no discriminatory treatment should be given to Chinese enterprises. The quotas granted to China will not be lower than those awarded to any other import sources in the EU.
The Ministry of Commerce stated that this consensus safeguarded the actual interests of Chinese enterprises, prevented further escalation of trade frictions between China and Europe, and provided a more stable and predictable trading and investment environment for both parties.
