The 16-point consensus also covers rare earth export licences, EV price undertakings and advance notice on control lists, MOFCOM said on Friday.
China and the European Union agreed on 16 points covering trade and investment, export controls, intellectual property and World Trade Organization reform after two days of talks in Beijing, China’s Ministry of Commerce said on Friday. Among the outcomes was an “understanding” on trade in hybrid vehicles, which had become the most disputed issue between the two sides.
The second meeting of the China-EU trade and investment consultation mechanism ran from 8 to 9 October and was co-chaired by Chinese Commerce Minister Wang Wentao and EU Trade Commissioner Maros Sefcovic. According to the joint statement, the two sides called the discussions “pragmatic and productive”. They will hold a third meeting in March 2027 and a ministerial video conference in January.
Hybrid vehicles and EVs
The ministry said the hybrid understanding was reached “in a manner consistent with WTO rules” after intensive consultations, but it gave no details. Before the talks, the Financial Times reported that China had rejected an EU request to voluntarily limit hybrid exports, and that Brussels was considering a cap of its own.
Plug-in hybrids were left out of the anti-subsidy duties the EU has applied to Chinese battery-electric cars since October 2024. Chinese hybrid exports to the bloc then rose from about 3,800 vehicles in October 2024 to 50,000 in July 2026, RFI reported.
On electric vehicles, both sides said they would continue procedures on company-specific price undertakings and reviews. They also agreed to keep exploring tariff cuts on some goods. Sefcovic had said he wanted “tangible results” because of the EU’s trade deficit with China, which runs at more than €1 billion a day
Rare earths and export controls
Under the export-control section, China said it would continue to speed up licence approvals for rare earths and permanent magnets bound for the EU through a “green channel”. In return, the EU said it would work with member states to resolve priority licence cases for dual-use exports to China. The two sides also agreed to give advance notice before adding entities to control lists and to make delisting procedures more transparent.
The Geopolitechs newsletter called the outcome “a limited but tangible easing of tensions”. It said it was still unclear whether the hybrid understanding rules out new import restrictions. Analyst Fred Gao said a dispute over the EU’s financing guidance for inverter projects “appears not to have been fully resolved”. On that issue, Brussels said the guidance does not target any particular country, and more talks are planned
Market access and next steps
The list also includes a technical dialogue on the EU’s Foreign Subsidies Regulation, continued talks on medical devices and a procurement event at the ninth China International Import Expo. China also pledged to work faster toward lifting bluetongue-related restrictions on livestock imports from some EU member states. The deal comes before EU leaders meet in Brussels next Thursday, where China is expected to be high on the agenda.
China, EU reach hybrid vehicle understanding in Beijing
