China's Ministry of Commerce has officially rejected proposals for voluntary export restrictions on hybrid vehicles destined for the European Union. The ministry stated that such measures would violate World Trade Organization rules and contradict principles of fair market competition.
The EU is reportedly seeking these limits to prevent potential deindustrialization, warning that failure to comply could result in higher tariffs. Currently, hybrid vehicles imported from China to the EU face a 10 percent tariff, while battery electric vehicles are subject to duties reaching 45 percent.
Trade data highlights a significant surge in hybrid imports, which grew from 3,800 units in October 2024 to 50,000 in July 2026, accompanied by a decline in average prices. The EU aims to use these negotiations to encourage Chinese automakers to invest locally or form partnerships with European manufacturers.
The automotive sector remains a critical growth driver for China, with total vehicle exports rising 65.3 percent year-on-year to 1.01 million units in August. New energy vehicle exports reached 526,000 units, marking a 130 percent increase compared to the previous year.
