China-EU deal puts new limits on booming hybrid vehicle trade

A China–EU trade agreement is set to add new restrictions on Chinese plug-in hybrid exports to Europe after a surge in shipments. Chinese hybrid exports to the EU’s 27 member states tripled to $7.5 billion in the first half of 2026, up from $2.5 billion a year earlier, according to Chinese customs data, and far above the $845 million exported in all of 2021. Demand rose after EU tariffs on Chinese-made EVs in 2024, since hybrids were exempt, and weak charging infrastructure in parts of Europe helped. On October 9, EU Trade Commissioner Maros Sefcovic said the deal would cut imports of “several million cars over four years,” but implementation details remain undisclosed.