The European Union and China have reached an understanding under which China would moderate exports of hybrid and plug-in hybrid cars to the bloc, according to the report. European Trade Commissioner Maroš Šefčovič announced the outcome after talks with Chinese officials in Beijing. The discussions lasted about three months and included two days of meetings in the Chinese capital.
Šefčovič said the EU could reduce imports by several million cars over four years, but the report provides no details on how the arrangement would work. EU lawmakers are due to assess the understanding the following week. The talks took place amid concern about the bloc’s trade imbalance with China, which the article puts at €1 billion per day.
Brussels estimates that imports of Chinese hybrids rose 86% in 2026, while their average prices fell 20%. Reuters reported that shares in European automakers rose broadly after news of the understanding, following declines over the preceding two years that the report links to US tariffs and increased Chinese exports. European brands including Renault and Volkswagen have also been investing in hybrids. The article notes that some buyers sought to rely less on external charging than plug-in-focused offerings require, while Chinese manufacturers have promoted hybrids with reduced reliance on charging.