EU trade chief says China deal could more than halve hybrid car exports

EU Trade Commissioner Maroš Šefčovič said on Friday, after talks in Beijing, that the EU and China had reached an agreement on Chinese hybrid car exports to the EU. The Guardian, the South China Morning Post (SCMP) and Reuters all reported his statement.

Šefčovič said the agreement could reduce Chinese exports of hybrid and plug-in hybrid cars to the EU by more than half. According to The Guardian and the SCMP, he said the reduction would amount to several million cars over four years. The reports describe the hybrid categories covered slightly differently.

Šefčovič also said it was the first time China had agreed to moderate its exports without a prior phase of trade tension. The SCMP quoted him as saying: "This is the first time that China has accepted to moderate its exports without going through the phase of prior trade tensions, and I very much appreciate that."

The outcome also includes Chinese facilitation of export licences for rare earths destined for the EU. In a statement cited by The Guardian, China's Ministry of Commerce said China was "willing … to continue facilitating the approval of export licenses for rare earths and permanent magnets destined for the EU".

According to Šefčovič, the outcome also includes improved EU access to the Chinese market. The SCMP reported that this covers goods including car parts, olive oil and textiles. Šefčovič put their current export value at "almost €4 billion", according to the SCMP.

The talks took place amid a large EU trade deficit with China and trade tensions between the two sides. According to The Guardian, negotiations began in June and aimed to curb a deficit of €1.18bn a day. The Guardian also reported that Šefčovič will brief EU diplomats in Brussels on Sunday, ahead of a leaders' summit on Thursday.

What is disputed

Reports differ on whether market access was agreed. The SCMP and Reuters say the sides agreed improvements. The Guardian reports the 16-point agreement leaves access for more EU food and drink under continued negotiation. Reports also differ on firmness: some say the deal "could" cut hybrid exports by more than half, others that it "will".

What each side says

Šefčovič called the deal the first of its kind. The Guardian quoted him as saying: "This is far from the end. It's a crucial first step, but only a first step." He said Chinese officials recognised political pressure over jobs in EU member states.

China's Ministry of Commerce said both sides would handle differences within WTO rules. According to The Guardian, China said the sides would follow "procedures concerning company price undertakings" for hybrid cars.

The reports reviewed by Vocemundi do not include a Chinese statement confirming the "more than half" figure, the agreement's text, or how the reduction would be enforced. They do not say whether battery electric vehicles are covered, and include no reactions from carmakers or EU governments.

Analysis

The arrangement, as described by Šefčovič, would represent a negotiated approach to trade imbalances rather than tariffs. The Guardian assessed that China appears to have accepted an EU request for a new model starting with hybrid cars, which officials had framed as a possible pilot for other sectors. Much remains unclear. The halving figure comes only from the EU side, and enforcement details are not public in the reports. Outcomes could range from a template extended to other industries to a narrower arrangement. Reactions from EU governments, industry and Chinese officials, and the upcoming leaders' summit, may clarify its scope.

Produced by the Vocemundi newsroom with AI assistance.