The EU’s official texts have now been released, and they clearly support some of the assessments I made in my previous article: the two sides reached an understanding that also includes arrangements to restrict Chinese hybrid vehicle exports.
Most importantly, in his post-meeting remarks, Commissioner Šefčovič stated that the two sides had reached a common understanding on moderating Chinese exports of hybrid and plug-in hybrid vehicles to the EU, which he believed could pave the way for a reduction of more than 50% in those exports. This is far more specific than the joint statement’s reference to an “understanding on trade in hybrid vehicles.” We can now conclude that, from the EU’s perspective, the agreement envisages reducing the volume of these exports, rather than simply removing trade restrictions.
The EU also highlighted another outcome that was not elaborated upon in the Chinese list. According to Šefčovič’s remarks, the two sides reached an understanding on improving market access for certain EU products through reductions in China’s most-favoured-nation (MFN) tariff rates. These include automotive components, olive oil and footwear, covering existing exports worth nearly €4 billion and expected to generate at least €225 million in tariff savings.
The remaining key points in the EU’s joint statement are broadly consistent with the 16 outcomes listed by China. Export licensing for rare earths will continue to benefit from a fast-track mechanism, while the EU’s approach to dual-use export licences for China remains focused on coordinating with Member States to address specific priority cases. On FSR, the two sides agreed only to hold technical discussions. As for inverters, the EU merely clarified that its guidance on the use of EU funding for clean energy projects involving certain inverters is country-neutral; it did not withdraw the rules.
Maroš Šefčovič's X post:
EU-CN trade needs real rebalancing. With Minister Wang Wentao we've reached a shared understanding to:
halve HEV, PHEV exports
improve access to China's market
further ease rare earths export licensing.
A first step. I welcome the genuine engagement. We reconvene by Jan.
Press remarks by Commissioner Šefčovič at the second meeting of the EU-China Trade and Investment Consultations
Beijing, 9 October 2026
Good evening, As I wrap up my visit to Beijing, let me begin by thanking my counterpart, Minister Wang Wentao, for his time, engagement and hospitality. I also appreciate the opportunity to meet Vice Premier He Lifeng.
I came here with one clear purpose: to start rebalancing the EU-China trade relationship and to make sure this first phase of negotiations under the Trade and Investment Consultations delivers its first tangible outcomes.
You know the context. The trade deficit is a mountain of a challenge for the EU, felt in every Member State. It is unsustainable and it demands a credible path to rebalancing.
We must defend our industries and restore a level playing field that has been distorted by global overcapacity.
Over the last three months, we have worked intensively at every level. We focused on clear priorities and measurable results as a proof of concept.
This is what that engagement has delivered so far:
First, we have reached a shared understanding to moderate China’s exports of hybrids and plug-in hybrids to the EU. This opens the prospect of cutting China’s exports by more than a half.
Second, we have reached a shared understanding to improve access to the Chinese market for a series of EU products through lower MFN tariffs. These range from car parts to olive oil and footwear, totalling almost 4 billion euros in current export value, which would bring at least 225 million euros in duty savings.
Third, we have reached a shared understanding to further facilitate China’s export licensing for rare earths and permanent magnets.
I often say that genuine negotiation deserves a real try. Therefore, I appreciate my counterpart’s engagement.
Having said that, this is far from the end. It is a crucial first step – but only a first step – in the process of rebalancing.
As President von der Leyen has said, dialogue needs results. And where the dialogue cannot deliver, the EU will use its tools to ensure a rebalancing.
Naturally, the President will now assess the outcomes and discuss next steps with leaders at the upcoming European Council. That is where the final decision lies.
With Minister Wang Wentao, we will reconvene at our level by January and organise the third Trade and Investment Consultations in March, to continue the work.
In parallel, our work also goes on in Brussels.
Thank you.
Transcript of the Q&A with Maroš Šefčovič:
Reuters
Thank you. Good evening. Joe Cash from Reuters. Are you able to give us more details on the hybrid deal? And a simple follow up question, will it be enough on the autos front?
Maroš Šefčovič
Thank you very much for a question. I would underline couple of very important elements. The first one is that it is for the first time that China has accepted to moderate it’s export without going through the face of prior trade tension, and I very much appreciate that. You already probably have seen that there was a positive reaction of the car industry in Europe, and. From the statement, I clearly see that the agreement, we have reached goals beyond the expectation. So I believe that this deal would be, appreciate it by, of course, the car industry.
As I said, it would be presented to my president, to the leaders, who would have a detail look at all the parameters that the European council next week. And of course, we have all the numbers, but you would understand that first, we have to present it to our member states, to the leaders, and then, of course, we’ll share it with all of you. What I would underline though is the fact that we know what is the outcome and we know how we want to get there. So all this is a negotiated in a great detail. And therefore, I’m fully confident that if you get endorsement for the leaders. We know how to complete and accomplishment and accomplish the shirt understanding.
CGTN
Thank you so much for the chance. This reporter Youyang with CGTN, China Global Television Network. And I have two questions. The first one, how to assess the overall outcomes of these tariff negotiations between China and European Commission. And the second one is actually the EU has continue. Need to, will try to put more restrictions on the imports of Chinese made electric vehicles to the European markets. So do you think that would harm the interests of European consumers by limiting their access to a low, a more competitiveness and of course, low priced and high quality products. Thank you so much.
Maroš Šefčovič
Thank you very much for your question. At first and foremost, I have to say that we never had the level of intensity of our. Changes and contacts as we have over the last 3,4 months with our Chinese counterpart. So together, Minister Van Guin Town, myself, our chief negotiators, our directors, general wise, Minister Linji, and the whole thing has been working very hard to accomplish this result.
So I want to say that this was not in a good faith, and this is the result of very intense work, and it reflects also the appreciation of the situation on the both sides. You know very well that European car industry is under a lot of stress, and therefore, this step was absolutely crucial. But I think that what we agreed is fair. We are working in a full compliance with the WTO methodology, which is appreciated also by our Chinese counterparts. And we know exactly how to proceed. And once we get the endorsement by our leaders, it will proceed with all relevant procedures.
I would like to underscents, underscore once again that this is based on negotiated solution, which I would say in this particular turbulent times on the global trading floor, it’s very much appreciated. I believe it’s the best solution for both China and European Union. Second question. Can you repeat it, please? It’s still.
Reporter
Thank you so much for the chance. Well, the second one is the European Union has kept imposing restrictions on the Chinese may like to vehicles. So will that harm the interests of European consumers by limiting their access to a high quality and low priced products?
Maroš Šefčovič
Thank you so much. I think if it comes, if you’re referring to the battery electric vehicles, I think this was again the issue which was discussed. And as you know, we shoot our guidance already in January of this year.
We confirmed our policies that regard also this afternoon, and you will find it reflected also in our joint statement. And of course, in these regards, we always have to look for the appropriate balance.So what was very important for European internet this stage is to make sure that the solution, which we found would be fair and would also provide adequate remedies and Protection the, for the European car industry. And we believe that in the case of battery electric vehicles, in a case of, for hybrids and plugging hybrids, we found that solution. And then as I said, we found it after detail negotiations with our Chinese counterpart.
Financial Times
Thank you, Joe Lei from the Financial Times. The EU said in June that there needed to be decisive action to reduce Europe’s deficit with China by October. Is this, are these agreements, are these enough, do you think, to for stall any action from the EU? Now?
Maroš Šefčovič
I think that what was very clearly stated was that what we need is a tangible outcome from. This very intense phase of negotiation, that was the reason why we established trade, an investment consultation mechanism. And we just completed this after afternoon, the seconds session. I know that, for example, our American partners have many more rounds than us. So we kind of went up through this very intense phase, but I believe that we achieve very good results. But that, as I said, and I think here we have a clear understanding with the minister Wang went out that this is not end, this is the beginning.
I very much appreciate the commitment of the minister that we are ready to work together on balancing the trade between China and European Union. In the case of Hebris and plugging hybrids, we are talking about reducing the exports from China to European Union over four years by several million cars, which I think it’s pretty significant. We are talking about a solution for seven very concrete target lines, which again, I think are offering variety of solutions for, I would say, almost every single European member states. And as I said, also appreciate that we are looking for the ways how to smoother further the mechanism of licensing of rare earth and permanent Magnus exports for the European company.
So overall, this package from my perspective, proves that these negotiations, if they’re done in such a constructive way as we headed right now. Bring results and show what should be the way forward.
So for us, this is kind of blueprint for the next phase. We already agreed on the agenda for the next meetings. I will have the video call and contact with Mr Van Guenta already in January. So it would be after we would implement this first share understanding, and we will look further into the future. And we want to have another full take this times in Europe, probably already by March. And that would be the mechanism which we would use and which I believe will help us to proceed gradually with the rebalancing the trade between China and the European Union.
Could you tell us how it’s gonna work to bring to 1/2 the number of plug in hybrids that are sold in Europe, if the European consumers want to buy them, how are we gonna limit them?
There are different techniques. How can you do these things? And I think that if you look in just recent couple of months, I think you would find the answer. But you would, I’m sure, appreciate that I first need to discuss the technique, the procedures, and get endorsement by the leaders for these steps in the European Union. But I, but what I would like to underscore once again, we know exactly what we agreed upon. What do you want to achieve and how we are going to do that. So I would say this is not the issue because the most difficult was to get here.
Now we have to present the deal to the leaders, and they would have to see that this is convincing enough to take the other steps, and the rest is the matter of procedure. And I can promise you that once we have that and endorsement, we’re starting to work ASAP.
The first thing after we arrive back in Brussels. And you know that leaders would have the first look at this negotiated solutions and shared understanding already next Thursday. So that would be for us. Clearly, you know the time whenever look at it, assess it and then we’ll start to act and put all the procedures in place.
The New York Time
A question from Keith Bradcher, New York Times. How does your plug in hybrid deal differ from your agency’s deal a dozen years ago on solar panels with China, is this also allowing the Chinese side to decide? Who sells at a markup for reduced number of vehicles in the European Union. Thank you.
Maroš Šefčovič
I think it would be very difficult for me to compare the details between the solar panels and plugging hybrids at this stage, there was a different phase. And at that time, we are living in completely different and much more turbulent world today, but we have seen the dramatic increase of the exports, so hybrids and plugging hybrids to the European Union.
So it was a, for us, absolutely imperative that, that we have to act three. Presented the case to our Chinese counterparts, and explain very clearly that the parameters of the export search in certain products from China to European Union go well beyond traditional trade optics, because we are in a situation that they could put under the thread the whole sectors in European industry, literally thousands of jobs. And the public opinion and the leaders clearly expect very fast action from our side, and.
And I am glad to say that the Chinese partners appreciated this very strong political argument, and therefore, we can proceed through the negotiated solution. And as I said, if it comes to the techniques and procedures, we’ll be very happy to inform you in full details once we have the clearance by the leaders to proceed.
South China Morning Post
Thank you. This is Dewey from the South China Morning Post. I’ve got a question on where else, is there agreement on where else sufficient for the EU? And is it enough to stop a trade war between the EU and China?
Maroš Šefčovič
First and foremost, we never, we have never spoken about the trade wars. And you probably heard me saying that I’m one of those who knows that sometimes very easy to declare the trade war or any word, but it’s very difficult to stop it.
So therefore, I put so much emphasis on negotiations. And I’m glad that today I can present to you the outcome. If it comes to the errors we went through few critical moments the last year. And I have to say that we reconvene already at that time on the level with Minister Wang, Wen Tao immediately. And we had several meetings on this issue already the last year. So we’ve been working on, together with our direct personal involvement to make sure that fast track procedure is put in place. And that guaranteed the necessary supply of the errors and permanent magnets for the European industry.
What we are looking into right now is how to make it even smoother, more user friendly for the European companies, which would bring more transparency and predictability for this very important supply chain. And I believe that through that understanding, we have achieve, we are accomplishing that. And I believe that European industry would be very much welcoming these additional steps in that direction.
NDZ
Good evening. This is Matias, come from Swiss daily newspaper NDZ. The joint statement talks about price undertakings for electric vehicles. Could you go a bit more in detail? Is there a timeframe? Could you quantify these price undertakings, provide us with a few figures?
Maroš Šefčovič
I think that if you follow this topic, and I know that it’s extremely technical, but what is very important to say that of course, we spend quite some time on discussing this issue, especially when the so called contravailing duties been introducing this segment from the side of the European Union. There was an interest from some companies to look into the possibility of price undertaking. And therefore, we issued the guidelines in January of this year how these procedures would work. What are the parameters, how this would deliver. And this was further discussed and I, and reckon firmed by our side that the guidelines that we issued in January are still plays, still in place, are still valid. So I would refer you to these guidelines. And if there is a need for further technical clarification, we’ll be very happy to provide you from expert level.
Bloomberg
Thank you, Commissioner. I’m Linda Lew from Bloomberg News. I want to ask, you mentioned about ensuring these trade agreements will be double BTO compliance. Can you please go into more details about what this mean? Would there be a additional safeguards that you’ll be looking to make sure that these are compliant with WTO rules?
Maroš Šefčovič
Thank you. Yes, as I said, I mean, if it comes to the concrete technique and procedure, I will have to reserve more details for later because first we have to presented to the leaders of the European Union institutions and the member states. But I really would like to reassure you, and we went into the great detail with Minister Wang, went on his team to make sure that procedure we’re posing is WTO compliant, fully compatible, and it’s based on the negotiated solutions. And as I said, once we have a clearance from the leaders, will, we will proceed ASAP to accomplish that.
Frankfurter Alcommand
Thank you very much and sorry to keep you awake so long. And Beijing, I’m about the hybrid car. If I. Understood correctly, it is about minus fifty % over the next four years. What is the base for that? The sales of this year, sales a lot last year. Could elaborate a little bit on these figures.
Maroš Šefčovič
Thanks. Of course, in these situations, you are working with the trade flows, you are working with the projection. So we’re looking at the period of four years. And according to the projection we have, that’s more than a half thing of the exports of hebris and plagging hybrids into the European Union under no change scenario. So I think by this step, we’re actually preventing several millions of cars exports from China to the European Union. And therefore, I think you already seen that aseya, which is Automobile Association of European Car Markets, already welcome this. Steven welcomes the agreement.