China says hybrid vehicle trade agreement with EU will benefit both sides

China's Ministry of Commerce has welcomed the recent understanding reached with the European Union (EU) on hybrid vehicle trade, describing the agreement as reciprocal and mutually beneficial. The ministry said it would help prevent further trade tensions between the two sides.

Speaking at a regular press briefing, Ministry of Commerce spokesperson He Yadong said China and the EU had held consultations within the framework of World Trade Organization (WTO) rules and agreed on three key principles: compliance with trade rules, respect for facts and non-discrimination.

According to He, the understanding safeguards the interests of Chinese companies while helping to prevent trade disputes between China and the EU from escalating.

He added that the agreement demonstrates how rules-based dialogue can help both sides resolve their differences, strengthen mutually beneficial cooperation and promote a more balanced and sustainable trading relationship.

Implementation details still under discussion

Questions remain over how the hybrid vehicle trade arrangements will be implemented, including whether an export licensing system will be introduced and how export quotas might be allocated among car manufacturers.

Addressing these concerns, He reiterated that the arrangements between China and the EU comply with WTO rules.

He also confirmed that both sides remain in discussions over the specific implementation details.

Meanwhile, the Chinese government will continue to seek feedback from the automotive industry and relevant companies, maintaining an open and transparent approach as discussions progress.