The European Union and China have reached an agreement to cut Chinese exports of electric and plug-in hybrid cars to the EU by up to 50% over four years, according to the EU trade envoy.
The deal, announced by European Trade Commissioner Maros Sefcovic, follows two-day talks in Beijing aimed at addressing the EU's growing trade deficit with China. The agreement also includes reducing Chinese import duties on €4 billion worth of EU exports and simplifying China's process for granting export licenses for rare earths and permanent magnets.
The agreement requires approval from all 27 EU member states, which will be discussed at the start of their summit in Brussels. According to UN Comtrade data, Chinese exports to the EU totaled $560 billion last year, up from $517 billion in 2023, while EU imports from China fell slightly to $268.3 billion.
Why it matters
The agreement may immediately ease pressure on European car manufacturers facing competition from Chinese imports.
This section reflects Dumpling editorial interpretation and is provided for context only.
What to watch
Watch whether European Trade Commissioner Maros Sefcovic will confirm the agreement in an official statement.
This section reflects Dumpling editorial interpretation and is provided for context only.
