China Agrees to Halve Electric and Hybrid Car Exports to Europe

The Guardian reported that China and the European Union have agreed to cut exports of Chinese electric and hybrid cars to the European market by half.

Maroš Šefčovič, the EU’s Trade Commissioner, confirmed that both sides have moved toward a negotiated solution, noting that Chinese partners acknowledged arguments regarding mounting political pressure in European countries, where cheap import flows threaten thousands of jobs across various economic sectors.

He stated that the agreement followed intensive negotiations since June, and that China accepted, for the first time, to reduce its exports without prior trade tensions.

Šefčovič clarified that the agreement opens the possibility of cutting China’s exports of hybrid cars by more than half, which would translate into a reduction in exports of plug-in hybrid and battery-electric vehicles over the next four years, in an effort to contain a daily trade deficit of 1.18 billion euros and protect threatened European jobs.

China has flooded Europe with cars, including hybrids and electric vehicles, threatening European manufacturers.