China, EU Hold Talks to Ease Electric and Hybrid Vehicle Trade Tensions

European officials have faced pressure to protect domestic manufacturers from rising low-cost imports, while Beijing has called for fair treatment under World Trade Organization rules and relief from countervailing duties. The two sides also discussed company-specific price undertakings as a mechanism to manage market competition without triggering a wider trade dispute.

The discussions also covered increasing China’s hybrid vehicle export quotas based on 2025 figures to support stable growth for Chinese companies. Broader negotiations include critical rare earth supply chains and agricultural market access. Although the dialogue has helped avert an immediate escalation, implementation challenges remain as both sides seek to balance green transition objectives with the protection of domestic industries.