Volkswagen Group's CEO, Oliver Blume, has advocated for enhanced collaboration between French and German automakers to counter the competitive threat posed by China's automotive sector. He highlighted that Volkswagen is currently grappling with significant operational hurdles and has unveiled a sweeping reform strategy. This includes plans to downsize its workforce by 100,000, optimize its business assets, and drastically cut down its future vehicle offerings in a bid to reverse its declining fortunes. In recent times, Chinese automobiles have been steadily gaining market share in Europe. In response, the European side has previously slapped additional tariffs on Chinese electric vehicles following anti-subsidy probes and mooted the idea of capping the market share of Chinese plug-in hybrid models. However, following consultations between China and Europe, both parties have reached a consensus on hybrid vehicle trade, adhering to World Trade Organization regulations. This agreement is built on three core principles: adherence to facts, non-discrimination, and compliance. Concurrently, they are moving forward with the subsequent steps in the electric vehicle anti-subsidy case. This mutual understanding protects the rights and interests of Chinese businesses, prevents trade frictions from escalating, and paves the way for the robust growth of bilateral economic and trade ties.