EU and China Agree to Cut Hybrid Car Exports to Europe

The European Union and China reached a deal to curb Chinese hybrid and plug‑in hybrid exports, potentially cutting shipments by more than half over the next four years. Trade Commissioner Maroš Šefčovič said the agreement would prevent “several million” cars from entering the EU market, easing pressure on European automakers such as Volkswagen and Mercedes‑Benz that have announced job cuts and plant closures. Beijing also agreed to lower duties on €4 billion of European goods, saving exporters €225 million, and to facilitate export licensing for rare‑earth elements and permanent magnets. The pact, which follows a €1 billion‑a‑day trade deficit, is seen as a blueprint for protecting other EU sectors and averting a broader trade escalation. The parties will meet again in March 2027 to review progress.