The European Union and China held trade talks in Beijing on 8\u20139 October, following which the Chinese Ministry of Commerce announced that a mutual understanding had been reached regarding trade in hybrid vehicles. The parties have not publicly disclosed the specific terms of this agreement; the talks took place against the backdrop of an EU trade deficit with China of \u20ac359.9 billion for 2025.<\/p>\n
Briefly about the main points<\/strong><\/p>\n The European Commissioner for Trade held a two-day consultation Maro\u0161 \u0160ef\u010dovi\u010d<\/strong> and the Minister of Commerce of the People\u2019s Republic of China Wang Wentao<\/strong>. The Chinese Ministry of Commerce has reported that the parties have reached a mutual understanding on the issue of trade in hybrid vehicles and have drawn up a list of agreed areas for further work.<\/p>\n At the same time, no details have been made public regarding possible import restrictions, import rules, price parameters or control mechanisms. At the time of the Chinese ministry\u2019s statement, the European Commission had not specifically confirmed whether this wording constituted a joint statement by the parties.<\/p>\n The parties also agreed on a further schedule of meetings: a ministerial video conference in January 2027 and the third regular in-person meeting of the Trade and Investment Consultations Mechanism in March 2027.<\/p>\n According to the European Commission, The EU\u2019s trade deficit with China in 2025 stood at \u20ac359.9 billion<\/strong>. A year earlier, the figure stood at \u20ac312.2 billion. This refers specifically to trade in goods: EU exports to China totalled \u20ac199.5 billion, whilst imports amounted to \u20ac559.5 billion.<\/p>\n This figure is not a record high: in 2022, the deficit stood at \u20ac397.3 billion. However, in the second quarter of 2026, it stood at \u20ac103 billion \u2014 the highest quarterly figure since the third quarter of 2022, according to Eurostat.<\/p>\n The European Commission attributes the imbalance to market distortions, state support for production and asymmetry in market access. The Chinese side, for its part, calls on the EU to avoid protectionist approaches and denies any unfair competition.<\/p>\n In the 12 months to September 2026, imports of plug-in hybrids into the EU rose by 86%, whilst their average price fell by approximately 20%. Vehicles of Chinese origin accounted for more than half of these imports.<\/p>\n\n
What is known about the outcome of the meeting in Beijing<\/h2>\n
The trade deficit in goods remains a key problem<\/h2>\n
Why the debate over hybrid vehicles differs from the case of electric cars<\/h2>\n