EU trade negotiators have travelled to China for two days of talks focused on curbing the export of cheap hybrid electric cars into Europe. The discussions aim to address Beijing's reported £1bn-a-day trade surplus.
Trade commissioner Maroš Šefčovič and his team flew out on Wednesday, with talks scheduled to begin on Thursday and continue into Friday. Sources indicate a hope for "tangible, meaningful and measurable" results before an EU leaders' meeting next week where China is a key agenda item.
The primary focus is on a potential pilot agreement for the car sector, which could later be expanded to other industries. This follows a request last month from the EU for China to voluntarily restrict hybrid exports, with a warning of potential safeguards, including quotas, if restrictions were not implemented.
The mood in the talks is said to have shifted, with EU member states reportedly hardening their demands for protection against Chinese imports. On Monday, Germany's chancellor, Friedrich Merz, reportedly agreed to a policy change, aligning with French president Emmanuel Macron to authorise a new instrument allowing EU leaders to defend trade by cutting access to the single market at short notice.