China and the European Union are discussing trade measures that could affect Chinese hybrid and plug-in hybrid exports to Europe. In talks earlier in October between EU trade commissioner Maroš Šefčovič and China’s commerce minister Wang Wentao, both sides reportedly showed a willingness to compromise, while the EU’s duties on Chinese new-energy vehicles remain in place.

Under a proposal reported ahead of any public confirmation, the EU would limit imports of Chinese HEVs and PHEVs to 350,000 a year from December 1, 2026. The permitted volume would then grow by 6% annually. That would be well below the roughly 800,000 vehicles of these types that China is forecast to export to the EU this year. The reports do not specify what trade benefits China might receive in return for accepting the proposed restriction.

Šefčovič said the discussions had gone well but indicated that he could not yet disclose details, as the outcome must go through further meetings. The negotiations are also thought to cover trade beyond vehicles. European auto-industry representatives have backed the proposed approach, while cautioning that any offer from China should be examined carefully. They also pointed to price competition and a stalled market in Europe, and said the proposal could reshape the position of Chinese brands there.