CAAM: China-EU consensus in consultations on hybrid and electric vehicles helps safeguard the common interests of both industries

On October 14, the China Association of Automobile Manufacturers (CAAM) issued a statement on the consensus reached in China-EU consultations on hybrid and electric vehicles. It noted that, under the framework of World Trade Organization (WTO) multilateral rules, China and the EU explicitly upheld the three principles of being fact-based, non-discriminatory, and compliant, and reached a consensus on trade issues concerning hybrid and electric vehicles. This consensus helps stabilize industry expectations on both sides, maintain the stable and smooth operation of the automotive industrial and supply chains, and create a more predictable environment for automakers to carry out trade and investment cooperation; it also helps safeguard the common interests of both industries and consumers and avoid escalation of trade frictions. By relying on the WTO platform and adhering to dialogue and consultation in handling trade frictions, China and the EU have set an example for the international community in properly managing differences. The full text is as follows: Statement of the China Association of Automobile Manufacturers on the Consensus Reached in China-EU Consultations on Hybrid and Electric Vehicles Recently, adhering to the principles of mutual respect and equal consultation, China and the EU conducted intensive consultations under the trade and investment consultation mechanism on trade issues concerning hybrid and electric vehicles and reached a consensus. The China Association of Automobile Manufacturers has paid close attention to this and expresses its welcome and support for the positive results of the consultations. At present, global trade protectionism is on the rise, and uncertainty in the international economic and trade environment has increased markedly. The automotive industry is highly globalized, has long industrial and supply chains, and features close cross-border collaboration. It faces multiple challenges, including policy barriers and supply chain restructuring. If trade frictions are allowed to escalate, it will not only push up corporate costs and disrupt normal market order, but also harm consumer interests and affect the transformation and upgrading of the automotive industry. As major global economies and automotive markets, China and the EU have strong industrial complementarity and broad room for cooperation. It is a rational choice consistent with the fundamental interests of both sides for the two sides to persist in managing differences and properly handling frictions through institutionalized consultations, replacing confrontation with dialogue and resolving disputes through cooperation. Under the framework of World Trade Organization (WTO) multilateral rules, China and the EU explicitly upheld the three principles of being fact-based, non-discriminatory, and compliant, and reached a consensus on trade issues concerning hybrid and electric vehicles. This consensus helps stabilize industry expectations on both sides, maintain the stable and smooth operation of the automotive industrial and supply chains, and create a more predictable environment for automakers to carry out trade and investment cooperation; it also helps safeguard the common interests of both industries and consumers and avoid escalation of trade frictions. By relying on the WTO platform and adhering to dialogue and consultation in handling trade frictions, China and the EU have set an example for the international community in properly managing differences. The China Association of Automobile Manufacturers is willing to continue to play its role as a bridge, promote enhanced communication and coordination within the industry, support China and the EU in moving toward each other under the trade and investment consultation mechanism, implementing the consensus and properly handling differences, jointly safeguarding a fair, open, and non-discriminatory international trade environment, and injecting positive energy into the green and low-carbon transformation and sustainable development of the global automotive industry. China Association of Automobile Manufacturers October 14, 2026 This article is excerpted from the "China Association of Automobile Manufacturers" WeChat public account. GMTEight editor: Xu Wenqiang.