China seeks more stable trade ties with EU after hybrid-car deal

China is willing to work with the European Union to make their economic and trade ties more stable, Vice Premier He Lifeng told a senior French diplomat in Beijing, China's official Xinhua news agency reported on Wednesday.

China is willing to work with the European Union to make their economic and trade ties more stable, Vice Premier He Lifeng told a senior French diplomat in Beijing, China’s official Xinhua news agency reported on Wednesday.

He made the remarks during a meeting on Tuesday with Emmanuel Bonne, a senior diplomatic adviser to French President Emmanuel Macron, following a preliminary trade agreement between Beijing and Brussels last week.

He said China-EU relations had “great potential for further growth” and that Beijing was ready to strengthen economic cooperation with France, according to Xinhua. He also called for the two sides to implement agreements reached by their leaders for mutual benefit.

The meeting followed two days of trade talks in Beijing on October 8 and 9, during which China and the EU reached an initial understanding on trade measures that could cut Chinese exports of hybrid and plug-in hybrid vehicles to the bloc by more than half over four years.

The agreement, announced by EU Trade Commissioner Maroš Šefčovič, also included measures to improve European companies’ access to China’s market and facilitate rare-earth export licences. Details of implementation have yet to be fully clarified.

China’s Commerce Ministry said on Monday that the arrangement would allow exports to continue under a quota comparable to those applied to other countries, following what it described as “intensive consultations” with the EU.

The discussions come amid broader trade tensions between Beijing and Brussels over China’s exports and the EU’s trade deficit. Both sides have sought to address disputes through negotiations and existing trade mechanisms, including the framework of the World Trade Organization.