China's commerce ministry said its hybrid vehicle trade agreement with the European Union allows growth from 2025 import levels, ensuring room for Chinese companies to expand exports steadily.

In a statement responding to questions on Monday, the ministry elaborated on the principles underpinning the arrangement, after an EU statement that Chinese hybrid vehicle exports to the bloc would be halved drew attention.

The EU's hybrid vehicle imports from China rose to 302,000 in 2025 from 107,000 in 2024, the ministry said, citing Eurostat data.

The arrangement allows growth from the 2025 baseline and addresses the reasonable concerns of both sides' industries in light of market conditions, the ministry said. It did not disclose specific quotas, an implementation timeline or the extent of the increase.

The statement provides a new baseline for understanding the agreement, though information released by both sides remains insufficient to establish the scale of the final arrangement or how it will be implemented.

EU Commissioner for Trade and Economic Security Maros Sefcovic said on October 9 that the agreement included halving China's exports of hybrid electric vehicles (HEVs) and plug-in hybrid electric vehicles (PHEVs) to the bloc.

He did not specify the baseline for that reduction. China's latest statement also did not explain how his remarks relate to an arrangement allowing growth from 2025 levels.

The ministry said the 2 sides had confirmed 3 basic principles: respect for facts, non-discrimination and compliance with rules. Any measures would neither specifically target Chinese products nor discriminate against Chinese companies.

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