On September 18, 2026, China's Ministry of Commerce responded to the China-EU hybrid vehicle trade dispute, explicitly opposing the voluntary export restraints proposed by the EU and saying they seriously violate WTO rules. Previously, the EU asked China to voluntarily limit hybrid vehicle exports to Europe, otherwise it might impose higher tariffs. Data show that EU imports of hybrid vehicles from China rose from 3,800 units in October 2024 to 50,000 units in July 2026. The EU hopes to limit this share to about 15%, but it has already exceeded one third. In the same period, China's August vehicle exports reached 1.01 million units, up 65.3% year on year, of which new energy vehicle exports were 526,000 units, up about 130% year on year. Overseas markets have become an important growth support, and China-EU trade issues have also extended from pure electric vehicles to hybrids and localized production.
【Body text】(Part 1/2, 2 parts in total; please translate only this section, keep the Markdown structure and format markers, and output the same JSON) China's Ministry of Commerce responded on September 18, 2026 to the China-EU hybrid vehicle trade dispute, explicitly opposing so-called “voluntary export restraints.” Previously, on September 17, the UK's Financial Times reported that the EU had asked China to voluntarily restrict hybrid vehicle exports to Europe, otherwise it could face higher tariffs.
MOFCOM: Voluntary export restraints seriously violate WTO rules
A MOFCOM spokesperson said in a statement on the ministry's website that “the so-called voluntary export restraints seriously violate WTO rules and run counter to market principles and fair competition. China firmly opposes them.” The statement also noted that any solution between China and the EU should balance the interests of both sides, comply with WTO rules and their respective domestic laws, and fully accommodate the interests of industries on both sides.
The Financial Times, citing an EU official, said that “if they do not restrict exports to our market, then we will take restrictive measures,” adding that the consideration is aimed at preventing deindustrialization. The report said the EU hopes to reach an export restriction arrangement through negotiations, and hopes such an arrangement will push Chinese automakers to increase investment in Europe or cooperate with local manufacturers.
Focus shifts: hybrids replace BEVs as new friction point
The EU began imposing countervailing duties on BEVs made in China in October 2024, and after stacking with existing rates, the maximum combined total is about 45%. In contrast, hybrid vehicles currently face a tariff of 10%.
Under the rate gap, the trade structure changed rapidly. According to the Financial Times, EU imports of hybrid vehicles from China rose from 3,800 units in October 2024 to 50,000 units in July 2026, while average prices declined over the same period. Sources show the EU wants China to limit the share of hybrid models in the EU market to about 15%, while that share currently exceeds one-third.
From the perspective of China's overall exports, overseas markets have become an important support for growth. According to data from the China Association of Automobile Manufacturers, in August 2026 China exported 1.01 million vehicles, up 65.3% year-on-year; of these, NEV exports were 526,000 units, up about 130% year-on-year, accounting for about 52.1% of total exports that month. During the same period, domestic NEV sales fell 4.6% year-on-year.
Inside the EU: discussion extends from BEVs to PHEVs and localization
German Vice Chancellor and Finance Minister Lars Klingbeil called on the EU to take stricter measures, including tariffs, against Chinese imports of plug-in hybrid vehicles, and to strengthen local content requirements for automobiles. He argued that the EU has already set trade barriers on Chinese BEVs, while PHEVs lack similar restrictions, causing European automakers to face “asymmetric competition.”
The pace of advancing localization rules is becoming intertwined with Chinese automakers' European expansion. As the EU prepares to introduce local production requirements, Chinese automakers are stepping up their search for production bases in Europe. Alfredo Altavilla, BYD's European advisor, told Reuters that while visiting factories across Europe, he frequently encountered executives from other Chinese automakers also looking for production bases. He said Chinese automakers are currently focusing on existing auto assembly plants, because acquiring and retrofitting existing factories can significantly shorten the time to production compared with building from scratch.
Broader context: EU-UK tariff arrangements and industry demands
Also worth noting are the rules of origin between the EU and the UK. The European Automobile Manufacturers' Association (ACEA) warned that the new EV tariffs and rules of origin originally scheduled to take effect on January 1, 2027, could prevent most EVs traded across borders from continuing to enjoy zero-tariff treatment, thereby triggering a 10% import tariff. ACEA estimates that the related measures could add around €1.5 billion in costs to the industry each year. The European Commission has proposed delaying EV tariffs between the UK and the EU by three years.
On the components side, Bosch labor representatives on September 16 called for political action at the EU level, through regulations that promote local production, to curb job losses in the industry. Previously, Bosch planned to cut 13,000 jobs in its core automotive business by the end of this decade.
From pure electric to hybrid, the scope of China-EU auto trade issues is expanding. The Ministry of Commerce's remarks and the EU's policy discussions have not yet converged. Whether the two sides can find an arrangement under the WTO rules framework that balances industry interests will, to some extent, affect Chinese automakers' market strategies and investment pace in Europe.
