China and the European Union have reached a mutual understanding on the export of Chinese hybrid cars to Europe. European Trade Commissioner Maroš Šefčovič said this on Friday, October 9, following two days of talks with Chinese Commerce Minister Wang Wentao in Beijing. The talks aimed to ease trade tensions between Beijing and Brussels.

EU commissioner: We are preventing millions of cars from China from being exported to the EU

The parties did not disclose details of the preliminary deal, but Šefčovič said it provides for halving imports of Chinese electric and hybrid cars. He said that with this step, “we are effectively preventing several million cars from China from being exported to the EU.”

Meanwhile, China’s Ministry of Commerce said the agreement on trade in hybrid cars was the result of intensive negotiations, Reuters reports.

Sigrid de Vries, head of the European Automobile Manufacturers’ Association (ACEA), noted that the deal “could help ensure an orderly transition to a new phase of China’s presence in the European market, which is in the long-term interests of all parties.”

The agreement also provides for lower tariffs on some European goods shipped to China, as well as measures to stabilize rare earth metal supply chains. According to Šefčovič, the agreements with China will benefit “virtually every” EU country.

The deal will require approval from the leaders of all 27 EU member states to take effect.

In 2024, the EU imposed punitive tariffs on electric vehicles from China. Since then, Chinese manufacturers have stepped up shipments of hybrid cars to Europe. Previously, China’s Ministry of Commerce had refused to voluntarily limit its export volumes.

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