EU and China agree to halve Chinese hybrid car exports to Europe

· Trade · European Union · China

The EU said Friday it had reached a landmark deal with China to halve its sales of hybrid cars in the bloc, with Brussels saying Beijing's shipments could fall by more than half over four years. The agreement followed two days of talks in Beijing between EU trade chief Maroš Sefčovič and China's Commerce Minister Wang Wentao, who also agreed to strengthen dialogue and prevent a full-blown trade war. The European Automobile Manufacturers' Association called the deal 'a positive step in easing trade tensions.' The EU fears surging Chinese car sales could kill off parts of its auto industry and jobs.

Why it matters：The deal defuses one front of EU-China trade tensions but signals continued European anxiety over Chinese industrial overcapacity.

Key points

  • Talks were held in Beijing between Sefčovič and Wang Wentao.
  • Brussels said Chinese hybrid shipments could fall by more than half over four years.
  • Both sides agreed to strengthen dialogue and avoid a full trade war.

Sources (original reporting)

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