EU and China open crunch trade talks in Beijing on hybrid car exports

European Union trade commissioner Maros Sefcovic has arrived in Beijing for two days of trade talks with China. The European Union is seeking a pilot agreement to curb the surge in Chinese hybrid-car exports, which has contributed to a significant trade deficit. According to RFI English, the deficit currently stands at around €1 billion per day.

Observers on both sides appear cautious about the potential outcome of the talks. A Chinese source with knowledge of the talks expressed optimism that some results would be achieved, stating that Sefcovic "will not go home empty-handed". In contrast, European analysts remain cautious. The China Chamber of Commerce to the EU has called for both sides to utilise the Trade and Investment Consultations mechanism to manage differences and push for solutions.

Chinese firms, particularly those in the automotive, medical equipment, and chemical products industries, are bracing for more trade frictions in the months ahead. According to the South China Morning Post, even limited progress that improves predictability and reduces the risk of further escalation would be meaningful for companies in both Europe and China.

Brief written by urgent.news from RFI English, South China Morning Post — 2 reports on this story. Machine-written — may contain errors; check the original before relying on it.