China and EU reach hybrid car trade understanding at trade mechanism meeting in Beijing
In short
Chinese Commerce Minister Wang Wentao and EU Commissioner for Trade and Economic Security Maroš Šefčovič held the second regular meeting of the China-EU Trade and Investment Consultation Mechanism in Beijing on October 8-9, 2026, and issued a joint statement with a list of outcomes. Under the list, the two sides reached an understanding on hybrid vehicle trade consistent with WTO rules, and China said it would keep easing export licence approvals for rare earths and permanent magnets to Europe through a "green channel". A third meeting is set for March 2027.
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Chinese Commerce Minister Wang Wentao and EU Commissioner for Trade and Economic Security Maroš Šefčovič held the second regular meeting of the China-EU Trade and Investment Consultation Mechanism in Beijing on October 8-9, 2026. According to the joint statement, the two sides held pragmatic and productive discussions and produced a list of outcomes and consensus. [ 1 , 2 , 3 , 4 , 7 , 8 , 9 , 10 ]
According to the list, after intensive consultations the two sides reached an understanding on hybrid vehicle trade in a manner consistent with WTO rules. They recalled the guidance document on price undertakings in the electric vehicle anti-subsidy case and said they would continue procedures on company price undertakings and reviews in that case. They will also continue to explore the possibility of lowering tariffs on some goods within the WTO rules framework, and keep up communication under the trade monitoring mechanism. [ 4 , 5 , 6 , 7 , 11 ]
On supply chains and export controls, China said it was willing to keep facilitating export licence approvals for rare earths and permanent magnets to Europe through a "green channel" mechanism, while the EU side said it would continue working with member states to help resolve key dual-use licence cases involving China. Under the export control dialogue mechanism, the two sides agreed to give advance notice before listing, make listing and delisting procedures more transparent, and support starting delisting procedures under their respective legal frameworks. They also discussed the possibility of structural facilitation measures for compliant trade in dual-use items. [ 4 , 7 , 11 ]
The list covers other sectors. The two sides will keep up dialogue on market access for medical devices, and the EU welcomed China's steps to expand imports of EU medical devices, including procurement matchmaking at the ninth China International Import Expo. China will speed up recognition of the regionalisation principle for eligible EU member states on the basis of risk assessment, and the two sides will explore ways to lift bluetongue-related restrictions on exports to China. They agreed on technical exchanges on computer reservation systems, follow-up consultations on cosmetics and pharmaceutical regulation, and a technical dialogue on the EU Foreign Subsidies Regulation (FSR). The EU clarified that its financing guidance for inverter projects does not target any specific country, and further consultations will follow. [ 4 , 7 ]
The two sides also said they had made progress on systemic intellectual property issues and would set phased goals, monitored through the China-EU intellectual property working group, and committed to take part in WTO reform. They reaffirmed that, as key trading partners, they would handle differences properly within WTO rules and work to keep bilateral economic and trade relations stable and more balanced. The third meeting of the mechanism is set for March 2027, with a ministerial video meeting in January before then. [ 1 , 2 , 3 , 4 , 7 , 8 , 9 , 11 ]
China News Service and Jiemian published the full 16-point list, while Xinhua's release referred to it as an attachment. Caixin cited the CCTV news client for the statement. [ 4 , 7 , 8 , 9 ]
Why it matters
The joint statement says the two sides, as key trading partners, are committed to stabilising bilateral economic and trade relations and making them more balanced. The list touches vehicles, rare earths, export controls, medical devices, intellectual property and WTO reform, and several items commit the two sides to further talks rather than final decisions.
Key facts
- Wang Wentao and Maroš Šefčovič held the second regular meeting of the China-EU Trade and Investment Consultation Mechanism in Beijing on October 8-9, 2026. [ 1 , 2 , 3 , 4 , 7 , 8 , 9 , 10 , 11 ]
- The two sides produced a list of outcomes and consensus. [ 1 , 2 , 3 , 4 , 7 , 8 , 9 , 10 ]
- After intensive consultations, the two sides reached an understanding on hybrid vehicle trade in a manner consistent with WTO rules. [ 4 , 6 , 7 , 11 ]
- The two sides will continue procedures on company price undertakings and reviews in the electric vehicle anti-subsidy case. [ 4 , 6 , 7 , 11 ]
- China is willing to keep facilitating export licence approvals for rare earths and permanent magnets to Europe through a "green channel" mechanism. [ 4 , 7 , 11 ]
- The two sides will continue to explore the possibility of lowering tariffs on some goods within the WTO rules framework. [ 4 , 5 , 7 , 11 ]
- The third meeting of the mechanism is scheduled for March 2027, with a ministerial video meeting in January before it. [ 1 , 2 , 3 , 4 , 7 , 8 , 9 , 11 ]
Confirmed by several sources
- Wang Wentao and Maroš Šefčovič held the second regular meeting of the China-EU Trade and Investment Consultation Mechanism in Beijing on October 8-9, 2026. [ 1 , 2 , 3 , 4 , 7 , 8 , 9 , 10 , 11 ]
- The two sides reached an understanding on hybrid vehicle trade consistent with WTO rules. [ 4 , 6 , 7 , 11 ]
- China will continue to facilitate export licence approvals for rare earths and permanent magnets to Europe through a "green channel" mechanism. [ 4 , 7 , 11 ]
- The two sides will continue to explore lowering tariffs on some goods within the WTO rules framework. [ 4 , 5 , 7 , 11 ]
- The third meeting of the mechanism will be held in March 2027, with a ministerial video meeting in January. [ 1 , 2 , 3 , 4 , 7 , 8 , 9 , 11 ]
Still unclear
- What the hybrid vehicle trade understanding contains. The joint statement says only that an understanding was reached in a manner consistent with WTO rules and gives no terms.
- Which goods could see lower tariffs. The statement says the two sides will continue to explore the possibility without naming goods.
- Which EU member states are covered by the regionalisation and bluetongue items. The statement refers only to eligible or relevant member states.
What local media are saying
Timeline, local time
- CLS publishes the joint statement on the second meeting. [ 1 ]
- China News Service publishes the joint statement with the full 16-point list of outcomes. [ 4 ]
- 36Kr reports the hybrid vehicle trade understanding. [ 6 ]
- Xinhua publishes the joint statement, with the list of outcomes as an attachment. [ 9 ]
- IT Home reports the hybrid vehicle understanding and the rare earth "green channel". [ 11 ]