Business · Trade · 2 days ago
EU and China agree on plan that could halve Chinese hybrid car exports
The European Union and China say they have reached a shared understanding to limit China's exports of hybrid and plug-in hybrid cars to the EU.
EU trade official Maroš Šefčovič said the plan could reduce those exports by more than half, but officials have not set out the specific measures.
The talks took place in Beijing after two days of meetings with China's trade minister, Wang Wentao.
Chinese electric cars face EU tariffs imposed in 2024, but hybrids have not faced those tariffs, and their exports to Europe have grown quickly.
The EU also wants better access for its products in China and says the sides will work to ease Chinese export licences for rare earth materials used in modern technologies.
The talks come amid a large EU trade deficit with China and concern that low-cost, state-supported imports are hurting European industries.
If negotiators do not show progress soon, EU leaders may discuss new powers to restrict China's access to EU markets.
The European Union and China reached a shared understanding aimed at limiting Chinese hybrid and plug-in hybrid car exports to the bloc.
EU trade chief Maroš Šefčovič said the understanding could open the way to cutting those exports by more than half.
Officials have not specified the measures they will use to limit the exports.
The sides also agreed to work on opening China’s market to some EU products and making Chinese rare-earth export licences easier to obtain.
The talks took place amid growing concern in Europe about its trade deficit with China and pressure for stronger economic measures.
- Who
- The European Union and China, represented in the talks by EU trade chief Maroš Šefčovič and Chinese Commerce Minister Wang Wentao.
- What
- They reached a shared understanding to limit Chinese hybrid and plug-in hybrid car exports to the EU; the exact measures are not yet specified.
- When
- Friday, October 9, 2026, after two days of trade talks.
- Where
- Beijing, China.
- Why
- The talks aimed to rebalance an increasingly strained EU-China trade relationship, including by addressing Chinese car exports.
EU
China
Trade balance
EU
The EU says its trade deficit with China is a major challenge and wants to rebalance trade.
China
Not stated
Hybrid car exports
EU
The EU is seeking to limit Chinese hybrid car exports, which have become a source of tension.
China
China warned the EU against adopting what it called protectionist measures.
We reached a shared understanding to limit China’s exports of hybrid and plug-in hybrid cars to the European Union.
This opens the way to cutting China’s exports by more than half.
I came here with one clear goal: to begin rebalancing the trade relationship between the European Union and China.
Two days of trade talks between Maroš Šefčovič and Wang Wentao began.
Šefčovič announced in Beijing that the EU and China had reached a shared understanding on limiting Chinese hybrid car exports.
- Potential export reduction
- More than half
- Products covered
- Hybrid and plug-in hybrid cars
- EU-China trade deficit
- €360 billion last year
- Chinese-made share of European hybrid sales
- About one-quarter in August
Sources
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