China's Commerce Ministry Opposes EU Demand for Voluntary Export Restrictions on Hybrid Vehicles

nashnova research
今天发布阅读约 4 分钟

China's Commerce Ministry on September 18 rejected the EU's reported demand that China voluntarily cap hybrid-vehicle exports, calling it a serious violation of WTO rules; the trajectory of China-EU auto trade talks is now the key variable for markets.

01

What exactly did the EU ask for?

The Financial Times reported that the EU asked China to voluntarily cap hybrid-car sales in the EU market at roughly 15%.
If China refuses, it would face higher tariffs.
This means → the EU framed it as a binary choice: either self-impose a quota or get taxed.
02

How did China respond?

The Commerce Ministry used strong language, calling the proposed curb a "serious violation of WTO rules" that runs counter to market-economy principles and fair competition.
Foreign Ministry spokesperson Guo Jiakun demanded the EU "honor its commitments to market openness and free trade and provide a fair, just, non-discriminatory business environment."
In plain terms = from the Commerce Ministry to the Foreign Ministry, Beijing's line is unified: the proposal breaks the rules, and China will not accept it.
03

Is there still room to negotiate?

The Commerce Ministry stressed that any solution "must ensure a balance of interests" and comply with WTO rules and each side's domestic law.
But the Ministry also noted its statement was a response to media reports and did not confirm whether the EU had formally made such a demand.
This means → Beijing left an opening — if the EU denies a formal request, the negotiation channel stays open; but if the reports are accurate, the two sides are far apart.

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