Brussels [Belgium], October 10: The European Union and China reached an agreement on Friday that will curb China's booming hybrid car exports, delivering a breakthrough in negotiations aimed at rebalancing their trade relationship.
The announcement came as Trade Commissioner Maroš Šefčovič wrapped up two days of talks in Beijing, the culmination of a push launched in June to narrow the bloc's €1 billion-a-day trade deficit with China.
"We have reached a shared understanding to moderate China's export of hybrids and plug-in hybrids to the European Union. This opens the prospect of cutting China's exports by more than a half," Šefčovič told reporters.
Šefčovič said that Beijing had also agreed to lower duties on European goods worth €4 billion, ranging from olive oil to footwear, a move that would save exporters €225 million.
"It is a crucial first step," he said. "But only a first step in the process of rebalancing."
The EU's trade deficit with China totaled nearly €360 billion in 2025, and is already up 12 percent so far this year.
China's automotive exports to the EU, which totaled €15.1 billion last year, are only a fraction of that. The two sides plan to meet again in March 2027.
Source: Emirates News Agency
