Zillar Barta Desk : China has rejected reports that the European Union is seeking voluntary restrictions on Chinese hybrid vehicle exports to the European market, saying such measures would violate World Trade Organization (WTO) rules and undermine fair competition.
Chinese Foreign Ministry spokesperson Guo Jiakun said Beijing would closely monitor the EU’s actions concerning China’s electric-vehicle industry and would protect the legitimate rights and interests of Chinese companies. He urged the EU to uphold market openness, free trade and WTO principles and provide a fair and non-discriminatory business environment.
The dispute follows a report by the Financial Times that Brussels had asked China to voluntarily limit sales of Chinese hybrid vehicles to around 15% of the EU market as part of efforts to avoid a wider trade conflict. Reuters said it could not independently verify the report, and the European Union had not immediately responded to its request for comment.
China’s Commerce Ministry said so-called voluntary export restrictions would seriously violate WTO rules and contradict market principles and fair competition. The ministry added that any agreement between China and the EU should balance the interests of both sides, comply with WTO rules and domestic laws, and take into account the interests of industries in both markets.
The issue comes amid growing trade tensions between Beijing and Brussels. The EU has raised concerns over the rapid growth of Chinese exports, including vehicles, batteries and chemicals, while Chinese officials have rejected accusations of overcapacity as protectionist. The EU’s goods trade deficit with China reached €360.6 billion in 2025, according to Reuters.
Chinese automakers have continued expanding overseas as competition in their domestic market intensifies. Reuters reported that Chinese passenger-vehicle exports rose 77.5% year-on-year in August 2026, while exports of electric and plug-in hybrid vehicles increased even more rapidly.
The latest disagreement adds another layer to the broader China-EU trade negotiations, with both sides facing pressure to address their growing trade imbalance while avoiding measures that could further disrupt the automotive industry.
