China, EU strike deal to cut Chinese hybrid vehicle exports by over half
FXI•China and the EU reached a shared understanding that could cut Chinese hybrid and plug-in hybrid exports to the bloc by more than half, reducing imports by several million cars over four years. The sides also agreed to improve EU product access in China and facilitate Chinese export licences for rare earths and permanent magnets.
1. Hybrid exports and access
The shared understanding would moderate China’s exports of hybrids and plug-in hybrids to the EU and cut imports of several million cars over four years, European Trade Commissioner Maros Sefcovic said. He did not detail how the agreement would be implemented. The two sides also reached understandings on improving EU products’ access to Chinese markets and facilitating export licensing for rare earths and permanent magnets.
2. Trade and vehicle figures
EU imports of plug-in hybrids rose 86% in the year to September, while prices fell 20%; more than half of those vehicles now come from China. The EU’s trade deficit with China cost the bloc more than €1 billion ($1.12 billion) a day last year. China and the EU also agreed to continue discussions on price undertakings and review procedures connected to the EU’s anti-subsidy investigation into Chinese electric vehicles.
