Last week, there were positive developments in Sino-European economic and trade relations, and both sides reached a consensus on issues such as the trade of hybrid vehicles.
According to Bloomberg's report on October 13th, European Commission Economic Commissioner Varis Dombrovskis said on Tuesday that the latest agreement is 'the first tangible result of these negotiations.' He added that the agreement not only includes import ceilings but also provides Europe with more market access.
But he also claimed 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 sector; “We need to continue this work in other industries as well.”
Dobrovolski once again uttered that tired cliché, claiming that the EU’s trade deficit last year amounted to approximately 360 billion euros. He said this “means almost 1 billion euros per day,” and that this is “un sustainable.”
He was unwilling to specify which industry the next potential project might involve, nor did he disclose the exact timing of any further agreements. However, he acknowledged that the scope should be “quite broad”.
"We need to act swiftly," said Dr. Dobrovsky, "but it's clear that this cannot be limited solely to the automotive industry. So I believe these attempts will continue, and we will strive to achieve results as soon as possible."
According to reports, EU leaders will hold a summit in Brussels later this week, where they will discuss the latest proposals put forward by Germany and France. These proposals aim to give the EU new powers, which could potentially exclude China or other countries from its single market.
However, Dostoevsky expressed hesitation. He emphasized, “We have quite a number of tools at our disposal.”
This trade and investment dialogue aims to seek contact with China, and seeks to resolve these issues through negotiation. He said, "Lone action will only lead us into a more difficult predicament."
According to the British 'Financial Times', in the economic and trade agreement reached between China and the EU last week, the EU plans to implement safeguard measures against the import of hybrid vehicles from China for a period of four years. Two EU officials revealed that the relevant arrangements may set the import volume at 350,000 units by 2027, with an annual increase of 6% over the next three years.
However, these specific figures have not yet been officially confirmed by the Chinese side. On October 12, the Chinese Ministry of Commerce provided further clarification regarding the results of the negotiations, emphasizing that both parties agreed on three basic principles for hybrid vehicle trade: respect for facts, non-discrimination, and compliance with the rules of the World Trade Organization.
The Ministry of Commerce pointed out that according to data from the European Union Statistical Office, the EU imported 107,000 hybrid vehicles from China in 2024, and this number increased to 302,000 in 2025. The two parties reached an agreement to “increase the quota” based on 2025, in order to ensure a sufficient export space for Chinese companies and maintain stable growth.
The Chinese side also emphasized that no measures should be targeted at Chinese products, and certainly not to discriminate against Chinese enterprises. The quotas allocated to China will not be lower than those for any other import sources in the European Union.
The Ministry of Commerce stated that this consensus safeguards the actual interests of Chinese enterprises, prevents further escalation of trade frictions between China and Europe, and provides a more stable and predictable trading and investment environment for both parties.
