EU and China reach understandings on hybrid cars and rare earths

The EU and China say they have reached understandings on trade in hybrid cars and on making Chinese rare earth exports to Europe easier to license.

The discussions also covered lower Chinese tariffs on some EU goods, including car parts, olive oil and shoes.

The EU says the steps could help address its trade imbalance with China.

They are an initial step, and the EU says it may use trade measures if talks do not bring results.