China and the European Union reached an "understanding" on trade in hybrid vehicles, the Chinese commerce ministry said on Friday, after two days of talks.

The EU's Maros Sefcovic and China's Wang Wentao agreed both sides would adhere to "procedures concerning company price undertakings" of hybrid cars, Beijing's commerce ministry said, citing a joint statement.

European Trade Commissioner Sefcovic has said he was seeking "tangible results" from his visit, and the Chinese ministry said the understanding on hybrid vehicle trade in a WTO-compliant manner followed intensive negotiations.

The discussions between Sefcovic and Wang in Beijing on Thursday and Friday were "pragmatic and productive," the Chinese ministry said.

Imports of plug-in hybrids into the EU have increased 86% in the year to September, with a 20% decline in prices. More than half of these vehicles are now from China, while for 2025, China's share of PHEV imports was 30% in value terms.

China and the EU also agreed to continue discussions on price undertakings and review procedures related to the EU's anti-subsidy investigation into Chinese electric vehicles, according to the ministry.

China and EU's dispute over Chinese EV exports, dating to 2024, has clouded bilateral ties, and has since broadened to include sectors such as brandy, pork and dairy, as well as rare earths and critical minerals.

Beijing also committed to continuing the supply of vital items such as rare earth minerals to the European Union.

China is "willing... to continue facilitating the approval of export licenses for rare earths and permanent magnets destined for the EU", the statement said.

Both sides will keep exploring the possibility of lowering tariffs on certain goods within the framework of WTO rules, and continue their dialogue on market access for medical devices, the Chinese ministry said.

A third regular meeting of their consultation mechanism will take place in March 2027, and the two sides agreed to maintain communication, including a ministerial-level video conference in January, the ministry said.