China, EU reach agreement to reduce Chinese hybrid vehicle imports

The EU and China have reached an agreement to reduce Chinese hybrid vehicle imports to Europe by half over the next four years, according to Semafor. This deal is seen as a step towards preventing a trade war, but it only addresses a portion of Brussels' concerns. The agreement is described as "only a first step" by the EU's trade commissioner, and it does not touch the bulk of the EU's $1 billion-a-day trade deficit with Beijing.

Chinese brands have been dominating European hybrid sales, accounting for one in four sales in August, which has put pressure on European automakers. Some analysts suggest that Beijing is playing for time and has conceded little on the structural drivers of the EU's trade deficit.

Brief written by urgent.news from Semafor's own syndicated text. Machine-written — may contain errors; check the original before relying on it.