The European Union and China have reached a shared understanding to reduce Chinese exports of hybrid and plug-in hybrid vehicles to the EU, marking a significant step towards rebalancing bilateral trade relations following negotiations in Beijing.
European Commissioner for Trade and Economic Security Maroš Šefčovič described the understanding as “a crucial first step”, saying it would help address the bloc’s trade imbalance with China while keeping wider negotiations on electric vehicles and market access alive.
- China agreed to reduce exports of hybrid and plug-in hybrid vehicles to the EU by more than half over the next four years.
- Beijing will lower import duties on around €4 billion of EU exports, including car parts, olive oil and footwear.
- Both sides also agreed to improve licensing for rare earth and permanent magnet exports and continue negotiations on electric vehicles, tariffs and broader trade issues into 2027.
The understanding follows months of negotiations over the EU’s trade deficit with China and concerns about rising imports of Chinese-made vehicles.
While both sides presented the outcome as progress, discussions on electric vehicles, tariffs and wider market access remain ongoing, with officials signalling that further agreements will be needed to strengthen long-term EU–China economic relations.
ℹ️ Reuters
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