Business · Trade · 1 day ago
China and EU agree to cut hybrid car exports by more than half
China and the European Union have agreed to limit Chinese exports of hybrid and plug-in hybrid cars to the bloc over the next four years.
EU trade commissioner Maros Sefcovic announced the agreement after two days of talks in Beijing with Chinese officials.
The deal could cut exports by more than half compared with projected levels, but neither side has explained how the limits will work.
Chinese hybrid sales have grown in Europe, in part because these cars were not covered by EU tariffs imposed on electric vehicles in 2024.
The EU is seeking to address a large trade gap with China and concerns that low-cost imports are putting pressure on European industries and jobs.
The two sides also agreed to work on access for some EU products and on export licences for rare earths and permanent magnets.
EU leaders are due to discuss the agreement in Brussels, and the two sides are expected to continue talks.
The European Union said China had agreed to reduce its hybrid and plug-in hybrid car exports to the bloc by more than half over four years.
The understanding was announced by EU trade commissioner Maroš Šefčovič after talks with Chinese officials in Beijing on Thursday and Friday.
The sides also agreed to continue discussions on rare-earth export licences and access to China for some EU goods.
The announcement came amid concerns in Europe about its trade deficit with China and the effect of low-priced imports on European industries.
The articles report that details of how export reductions would work remain unclear, although China referred to procedures for company price undertakings.
- Who
- The European Union and China, represented by EU trade commissioner Maroš Šefčovič and Chinese officials including commerce minister Wang Wentao.
- What
- An understanding to reduce Chinese hybrid and plug-in hybrid car exports to the EU by more than half over four years.
- When
- Announced on Friday, 9 October 2026; the export reduction is to cover four years.
- Where
- Beijing, China.
- Why
- To ease trade tensions and address the EU-China trade imbalance and European concerns about the impact of Chinese imports on local industry.
This story does not have two clearly opposing sides.
This is the first time that China has accepted to moderate its exports without going through the phase of prior trade tensions, and I very much appreciate that
I came here with one clear purpose: to start rebalancing the EU-China trade relationship
reaffirmed their commitment as key trading partners to properly managing differences under WTO rules, maintaining stable bilateral economic and trade ties and making them more balanced.
Šefčovič held trade talks in Beijing with Chinese commerce minister Wang Wentao and other Chinese officials.
Šefčovič announced an understanding to reduce Chinese hybrid car exports to the EU by more than half over four years.
Šefčovič was due to brief EU diplomats in Brussels, according to the Guardian.
EU leaders were due to discuss next steps at a summit in Brussels.
Mint reported that Šefčovič would meet Wang by January, followed by another round of talks in March.
- Export reduction
- More than half, or several million hybrid and plug-in hybrid cars, over four years.
- Talks
- Held in Beijing on Thursday and Friday, 8–9 October 2026.
- EU-China trade deficit
- The Guardian reported €1.18 billion a day; Mint described it as exceeding €1 billion a day.
- China's trade surplus with the EU
- €360 billion last year, according to Mint and NZZ.
- Other issues covered
- Rare-earth export licences and access to China for EU goods, including food and drink, car parts, olive oil and textiles.
Sources
Weniger Hybridfahrzeug-Exporte: EU und China wenden Eskalation vorerst ab
China agrees to cut exports of hybrid cars to Europe. Is this a rare trade win for the EU?
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