How China and the EU pressed pause on trade war

Live updates

1. 2h ago

   China and EU Agree to Limit Hybrid Car Exports

   China and the EU have reached a deal to limit Chinese exports of hybrid cars, easing trade tensions between the two. The agreement sets a cap of 350,000 units annually on Chinese hybrid vehicle imports. This move is seen as a temporary respite for European carmakers and a concession from Beijing to address trade imbalances.

   Why it matters

   The EU has been pushing for stronger measures to protect its industrial base from Chinese competition. The deal comes after weeks of high-wire negotiations between China and the EU. European carmakers have been seeking relief from cheap Chinese imports.

   What is confirmed

   • The EU will cap Chinese hybrid vehicle imports at 350,000 units annually.
   • China and the EU have reached a deal to limit Chinese exports of hybrid cars.
   • The deal aims to address trade imbalances and ease tensions between the EU and China.

   Still unconfirmed

   • The deal may only offer temporary respite against Chinese carmakers.

   What to watch next

   • Implementation of the hybrid car export cap
   • Further negotiations on electric vehicle trade
   • EU's decision on potential tariffs for Chinese EVs
   Sources used for this update (17)

   1. AP News — China and EU trade envoys seek ways to ease tensions over growing imbalances
   2. The New York Times — China and Europe Agree to Deal to Limit Chinese Exports of Hybrid Cars
   3. fortune.com — China shock: EU says trade deal could cut up to 50% of Chinese EV and plug-in hybrid imports
   4. www.straitstimes.com — China says ‘escalation’ of disputes can be avoided after EU trade talks
   5. Reuters — China's $7.5 billion EU hybrid boom faces new curbs under China-EU deal
   6. Bloomberg.com — Chinese Lithium Slumps 10% After EU Deal Slashes Hybrid Exports
   7. Bloomberg.com — China Says Hybrid-Car Deal With Europe to Ensure ‘Export Space’
   8. The Guardian — EU deal with China limits imports of hybrid electric vehicles
   9. WSJ — EU to Cap Chinese Hybrid-Vehicle Imports at 350,000 Units Annually, Official Says
   10. South China Morning Post — How China and the EU pressed pause on trade war – and what it took to get there
   11. Euronews.com — EU’s China trade breakthrough risks taking pressure off Beijing
   12. Reuters — Leapmotor-Stellantis JV calls EU-China import cap deal 'interesting alternative'
   confidence 85%