EU-China understanding targets a more than 50% cut in Chinese hybrid car exports
The EU and China have reached a preliminary understanding that could reduce Chinese exports of hybrid and plug-in hybrid cars to the bloc by more than half over four years, Trade Commissioner Maroš Šefčovič said. The mechanism is not yet public and requires endorsement by EU leaders; the two sides also agreed to improve access for some EU goods in China and facilitate Chinese rare-earth export licences.
Bottom line — The proposed cut covers several million cars over four years, but EU leaders must still endorse the understanding.
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Šefčovič described the agreement as a first step towards rebalancing trade, not a comprehensive solution.
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The EU and China agreed to continue work on price undertakings and review procedures related to the EU's anti-subsidy investigation into Chinese electric vehicles, according to their joint statement.
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China said it would continue facilitating export licences for rare earths and permanent magnets through a fast-track process.
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Deutsche Welle reported that the market-access agreement covers nearly €4 billion in EU exports, including car parts, olive oil and footwear.
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EU Reporter said the package includes estimated duty savings of at least €225 million for those EU exports.
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The EU and China are due to hold a ministerial-level video conference in January, with another consultation meeting scheduled for March 2027.