China holds intensive talks on hybrid, EV trade with EU
BEIJING: China and the European Union held “intensive consultations” on the trade of hybrid and electric vehicles, as well as efforts to balance economic and trade concerns, the commerce ministry said on Monday. On hybrid vehicles, both sides agreed that the export quota given to China would not be lower than quotas allocated to other imports sources, and that EU measures must not specifically…
China and the European Union have reached a 16-point consensus to address escalating trade tensions, with China agreeing to reduce exports of hybrid vehicles to the EU. The agreement, finalized on Friday, aims to prevent a wider EU trade war and buy time for further negotiations. EU leaders are planning additional talks in January and March to explore more robust measures.
However, the deal represents a strategic victory for China, as it conceded minimal ground on the structural causes of the EU's trade deficit. China's Ministry of Commerce emphasized their commitment to WTO rules and maintaining balanced economic ties. EU ambassadors expressed cautious optimism about the outcome, viewing it as a starting point for rebalancing the trade relationship.
The agreement comes amid surging Chinese hybrid car exports, which have eroded European manufacturing jobs. EU leaders are concerned about the trade deficit, which now exceeds 1 billion euros ($1.1 billion) daily, driven by cheap Chinese imports. Safeguard measures, such as tariff-rate quotas, would be implemented if the deficit persists, providing limited relief without significantly altering China's trade dominance.
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