The European Union has announced a landmark agreement with China to significantly reduce its sales of hybrid cars within the bloc. The deal aims to address fears that surging Chinese hybrid car sales could threaten parts of the European car industry.
Trade commissioner Maroš Šefčovič stated that the agreement, the first of its kind, resulted from intense negotiations with China since June. He indicated that the deal could cut China's hybrid car exports to the EU by more than half, translating to a reduction of several million plug-in and battery-powered hybrid cars over the next four years.
Šefčovič noted that China recognised the political pressure in European member states due to potential job losses from cheap imports across various sectors. He added that both sides would continue negotiations on cars, rare earth export restrictions, and EU food and drink access to China as part of a 16-point agreement.