EU and China strike interim trade deal that could cut Chinese hybrid exports, EU envoy says
- On Friday, European Trade Commissioner Maros Sefcovic and Chinese Commerce Minister Wang Wentao reached a deal in Beijing to moderate Chinese exports of hybrid and plug-in hybrid vehicles to the European Union.
- European Commission President Ursula von der Leyen warned lawmakers last month that the trade gap reached a "tipping point," as Chinese exports to the EU totaled $560 billion last year while EU imports were $268.3 billion.
- Negotiators also agreed to reduce Chinese import duties on $4.5 billion worth of EU goods, including car parts and olive oil, while simplifying export licenses for rare earths and permanent magnets essential to advanced manufacturing.
- The agreement requires approval from leaders of all 27 EU nations, who will discuss the outcome at their summit in Brussels on Thursday, October 15.
- Sefcovic projected the deal could cut Chinese hybrid exports by more than half over a four-year period, with both sides committing to maintain communication and meet again next March.
113 Articles
113 Articles
China, EU strike deal to halve Chinese hybrid exports
China and the European Union have reached a deal that could cut Chinese exports of hybrid cars to the bloc by more than half, European Trade Commissioner Maros Sefcovic said on Friday after talks in Beijing aimed at reducing the EU's ballooning trade deficit with China.
The high-level negotiations held in Beijing between the European Union and China ended on Friday with an unexpected agreement that can move both sides away from an imminent trade war. The most important aspect of the agreement involves what both sides described as an understanding of Chinese exports of hybrid cars, driven by gasoline and electricity, which are among the most tense points in trade relations between both sides. Maros Sefcovic, the…
Europe taxed, at the entry of the Union, state-subsidised electricity produced in China. It then asked the Chinese to cut the exports of PHEV so as not to repeat the punishment.
EU Trade Commissioner Maroš Šefčovič was in Beijing trying to rebalance trade with the Asian giant.
On Friday 9 October, the European Union reached an agreement with China to limit exports of hybrid cars, and much more will be needed to reduce Europe's trade deficit with the world's largest exporter.
China has agreed to reduce the export of hybrids to the EU by more than half, announced Maroš Šefčovič. The agreement covers four years, and the schedule and mechanisms are yet to be determined.
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