China Says It Has Reached a Deal With the EU on Hybrid Cars
Beijing says China and the European Union have agreed on hybrid cars. The deal could head off further EU protective measures against Chinese car exports.
China and the European Union have reached an agreement on hybrid vehicles, according to Beijing. The deal is linked to trade talks during which EU official Maroš Šefčovič visited China. It could matter for the future of EU-China trade relations in the car industry.
Cars at the centre of talks
Just before Šefčovič's visit, cars moved to the centre of the discussions, even though they account for only a fraction of the trade deficit. An agreement is meant to prevent further EU protective measures against Chinese car exports. It could also serve as a blueprint for other sectors.
Background
In October 2024, the EU had already imposed countervailing duties of up to 35 percent on purely electric cars from China. Hybrids were exempt. While European manufacturers such as Volkswagen have since managed to stabilise their market share in fully battery-electric cars, imports of hybrid cars from China have risen sharply.
What happens next
Šefčovič was due to make a statement to journalists in Beijing shortly. EU heads of state and government will review the results of the trade talks at their meeting in Brussels next Thursday.
