The European Union and China have reached an agreement to curb China’s exports of hybrid cars to Europe, the EU’s trade commissioner announced in Beijing. He said it could cut those exports by more than half against projected growth. China has also agreed to lower duties on €4 billion of European goods.
The European Union and China reached an agreement on Friday, October 9, to curb China’s fast-growing exports of hybrid cars, Politico reported.
The announcement came as Trade Commissioner Maroš Šefčovič ended two days of talks in Beijing.
What Was Agreed
“We have reached a shared understanding to moderate China’s export of hybrids and plug-in hybrids to the European Union,” Šefčovič told reporters. “This opens the prospect of cutting China’s exports by more than a half.”
That estimate is based on projections of how Chinese exports would have grown over the next four years without a deal. In practice, he said, it would mean “several millions of car exports from China to the European Union” being prevented.
A Second Concession
Šefčovič said Beijing had also agreed to lower duties on European goods worth €4 billion, ranging from olive oil to footwear.
He said that would save European exporters €225 million.
What Is Still Unclear
The commissioner declined to give specifics before EU leaders formally authorise the Commission to proceed.
- China’s Commerce Ministry mentioned the understanding in a 16-point statement, but gave no details of how exports would be restrained
- Šefčovič would not say whether the deal allows the EU to impose safeguards, a mixture of import quotas and tariffs that Brussels has been considering
- He said the arrangement would comply with World Trade Organization rules
How It Came About
The talks were the culmination of an effort begun in June to narrow the EU’s trade deficit with China, which stands at €1 billion a day.
France and Germany strengthened the commissioner’s position before the talks by calling for tough EU action if China did not curb its growing export surplus.
Politico described the outcome as a win for the Commission, which had been under pressure to secure concessions from Beijing.
‘A Crucial First Step’
“It is a crucial first step,” Šefčovič said.
The agreement is intended to help shield European carmakers from low-priced Chinese competition. EU leaders are due to discuss trade with China at their summit next week.
Image: A BYD Seal U plug-in hybrid in Germany, May 2025 (file photo). Photo by Alexander Migl via Wikimedia Commons, CC BY-SA 4.0.
