EU and China Strike Interim Trade Deal That Could Cut Chinese Hybrid Exports, EU Envoy Says
HONG KONG (AP) — The top trade envoys for China and the European Union agreed Friday on a broad initial deal following two days of talks aimed at calming escalating tensions over trade imbalances, the EU trade commissioner said.
On Friday, top trade envoys for China and the European Union reached an initial agreement aimed at addressing trade imbalances and reducing tensions, according to EU Trade Commissioner Maros Sefcovic. The deal encompasses lower tariffs for some European goods heading to China and measures to stabilize rare earth supply chains. It could potentially cut up to 50% of Chinese electric and plug-in hybrid vehicle imports to the EU and lower tariffs for products benefiting nearly every EU nation.
Approval from EU leaders is required to implement the deal, which aims to resolve key factors contributing to China's $360 billion trade surplus last year. Chinese Commerce Minister Wang Wentao expressed concerns about recent EU measures but emphasized that China is a partner in finding solutions. EU Automobile Manufacturers' Association head Sigrid de Vries stated that the deal helps prevent further instability in the EU and facilitates the orderly transition of Chinese presence in the European market.
Both sides agreed to facilitate China's export licensing for rare earths and permanent magnets and improve access to the Chinese market for EU products, including car parts, olive oil, and footwear, totaling nearly $4.5 billion in current exports. The two sides plan to meet again in January and March. The talks aimed to resolve disputes over advanced computer chipmaking machines, imposed at U.S. insistence, and restrictions on Chinese imports of electric vehicles and EV batteries.
Trade tensions have escalated recently, with both sides imposing or considering curbs on each other's imports.
Written by urgent.news from The Japan News by The Yomiuri Shimbun's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
