EU and China reach hybrid car deal

The European Union and China agreed on Friday to curb China's booming hybrid car exports, delivering a breakthrough in negotiations aimed at rebalancing their trade relationship.

Šefčovič wraps up Beijing talks

Trade Commissioner Maroš Šefčovič completed two days of talks in Beijing, culminating a push launched in June to narrow the bloc's one billion euros a day trade deficit with China.

France and Germany backed tough stance

The deal marks a win for the EU executive, which faced pressure to secure concessions from Beijing. France and Germany strengthened Šefčovič's hand by calling for tough action on trade.

Exports could fall by more than half

Šefčovič said the two sides reached an understanding to moderate China's export of hybrids and plug-in hybrids to the European Union, cutting China's exports by more than a half.

“We have reached a shared understanding to moderate China's export of hybrids and plug-in hybrids to the European Union. This opens the prospect of cutting China's exports by more than a half.”

China cuts duties on European goods

Beijing agreed to lower duties on European goods worth four billion euros, ranging from olive oil to footwear, saving exporters two hundred twenty five million euros.

Rare earth exports to be fast-tracked

China said it was willing to continue fast-tracking licenses to export rare earth elements to the EU. Automakers had shut down assembly lines after China temporarily restricted exports last year.

Next steps and future meetings planned

Brussels sees the hybrid deal as a blueprint for shielding other EU sectors under strain, such as chemicals or machinery. The two sides plan to meet again in March twenty twenty seven.