EU says trade deal could cut up to 50% of Chinese EV and plug-in hybrid imports and lower tariffs for some European exports to China
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 European Union has reached a preliminary trade deal with China after two days of talks, according to EU Trade Commissioner Maros Sefcovic. The deal could potentially reduce Chinese electric and plug-in hybrid vehicle imports to the EU by up to 50%, while also lowering tariffs for some European exports to China. This development comes amid growing tensions over trade imbalances, with China holding a record trade surplus of 360 billion euros ($403 billion) in 2022.
The EU is also seeking to address concerns over recent restrictive measures, with Chinese Commerce Minister Wang Wentao stating that China is a partner in resolving these issues. Both sides have agreed to facilitate China's export licensing for rare earths and permanent magnets, as well as improve market access for various EU products. Further discussions on these matters are scheduled for January and March.
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