China, EU reach deal to 'moderate' China's car exports to EU
An agreement between the EU and China would reduce exports of Chinese electric and plug-in hybrid cars to the 27-member European bloc by up to 50%, according to the EU trade envoy.
European Trade Commissioner Maros Sefcovic confirmed on Friday that China and the European Union have agreed on a deal that could reduce Chinese exports of hybrid vehicles to the EU by over half. This development came after two days of discussions aimed at narrowing the EU's expanding trade deficit with China.
Sefcovic explained that the deal will moderate China's exports of hybrids and plug-in hybrids to the EU, potentially cutting China's exports by more than half over a four-year period. By implementing this measure, the EU aims to prevent several million Chinese car exports from reaching its market.
While Sefcovic did not detail the implementation process, he expressed satisfaction with the outcome, stating that both sides achieved a "very good result." Additionally, the two parties reached an agreement to lower Chinese import duties on €4 billion ($4.5 billion) worth of EU exports, which include car parts, olive oil, and footwear. They also agreed to streamline China's process for issuing export licenses for rare earths and permanent magnets.
The agreement now requires approval from leaders of all 27 EU nations, who will discuss the outcome at the beginning of their summit in Brussels on Thursday. According to UN Comtrade data, Chinese exports to the EU amounted to $560 billion (€500 billion) last year, an increase from $517 billion in 2023. Exports to major countries, such as Germany, Italy, Spain, and Poland, rose by approximately 10% compared to the previous year, with shipments to Hungary increasing by 43%.
On the other hand, China imported $268.3 billion (€240 billion) worth of European goods last year, a decrease from $269.4 billion in the previous year. Denmark, Ireland, and France contributed the most to these imports. Earlier this month, European Commission President Ursula von der Leyen cautioned lawmakers at the European Parliament that the trade gap had reached a critical point, vowing to utilize all available tools to rebalance the relationship.
Written by urgent.news from DW English (Top Stories)'s reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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