The EU says it has struck a landmark agreement with China to roughly halve Chinese hybrid car sales in the bloc, aiming to shield parts of the European car industry from a surge in imports.
Key facts
- The EU says the deal would see China 'halve' its hybrid car sales in the bloc.
- Brussels says shipments could fall by more than half over four years, cutting millions of vehicles.
- Trade commissioner Maroš Šefčovič called it the first deal of its kind.
- Negotiations have run since June amid a trade deficit of €1.18bn ($1bn) a day.
- The agreement is driven by fears for European car industry jobs.
The European Union has announced what it describes as a landmark agreement with China to ‘halve’ Chinese sales of hybrid cars in the bloc, according to the Guardian. The move comes amid fears that surging sales could damage or kill off parts of the European car industry.
Brussels said Beijing’s shipments could fall by more than half over four years, a reduction that would amount to millions of vehicles. The EU framed the deal as a way to ease pressure on European carmakers and protect jobs across the continent.
EU trade commissioner Maroš Šefčovič said the agreement was the first of its kind. He credited ‘intense’ negotiations with China, which have been under way since June, for producing the outcome.
According to the Guardian, the talks were driven in part by the need to curb a trade deficit of €1.18bn (£1bn, or about $1bn) a day. That imbalance has fuelled mounting tensions between the two economic powers.
The reported scale of the cut reflects the concern in Brussels about the pace of Chinese hybrid car exports into the European market. The EU presented the deal as a significant step in managing trade relations with Beijing while safeguarding domestic industry.
Why it matters
The European car industry employs large numbers of workers, and a surge in cheaper imports has raised fears about jobs and competitiveness. An agreement to curb Chinese hybrid exports marks a notable shift in EU-China trade relations and could influence prices and choices for car buyers across the bloc.
Frequently asked questions
How much will Chinese hybrid car exports to the EU fall?
The EU says China has agreed to 'halve' its hybrid car sales in the bloc, with Brussels saying shipments could fall by more than half over four years, cutting millions of vehicles.
Why did the EU and China negotiate this deal?
According to the Guardian, the talks aimed to curb a trade deficit of €1.18bn (about $1bn) a day, which has caused mounting tensions, and to address fears that surging sales could harm parts of the European car industry.
Who led the negotiations for the EU?
EU trade commissioner Maroš Šefčovič described the agreement as the first of its kind and the result of 'intense' negotiations with China that have been ongoing since June.