China details outcome of EU trade talks on hybrid, electric vehicles

China's ​commerce ministry said on Monday a ​new European Union hybrid vehicle ‌arrangement would ​allow continued export growth and ensure it a quota no smaller than that of any other country, ‌following "intensive consultations" between the two.

The comments came after European Trade Commissioner Maros Sefcovic said on Friday that a China-EU deal reached after talks in Beijing could cut Chinese exports ‌of hybrid cars to the bloc by more than half. The EU effort aimed ‌to reduce its ballooning trade deficit with China, while the Chinese commerce ministry said in a statement the talks were part of efforts to balance broader economic and trade concerns.

The consensus "strongly safeguards ⁠the ​practical interests of Chinese ⁠enterprises, avoids escalation of China-EU trade frictions, and provides both sides with a stable, predictable, and sustainable ⁠trade and investment environment," it added. Both sides agreed that the export quota on hybrid ​vehicles for China would not be lower than quotas allocated to other import ⁠sources, and that EU measures must not specifically target its products or discriminate against its firms.

Both ⁠also ​agreed on an upward adjustment of hybrid vehicle exports from 2025 figures to ensure opportunities and stable growth for Chinese enterprises, the ministry added in ⁠its statement. The deal emerged after three months of discussions between Sefcovic and Chinese officials, including ⁠Commerce Minister Wang Wentao, ⁠following years of disputes between Beijing and Brussels over soaring Chinese exports of items such as cars.