The Chinese Commerce Ministry said on Friday it had reached an “understanding” with the EU on the export of hybrid electric vehicles. The announcement came after Trade Commissioner Maroš Šefčovič wrapped up two days of talks in Bejiing, the culmination of a monthslong push to narrow the bloc’s €1 billion-a-day trade deficit with China. Cars had become the focus of the discussions in the run-up to the visit by Šefčovič as he sought an agreement that would avert the need for defensive measures to protect the European market.
Chinese car exports had been steadily ramping up, and in August accounted for one in eight cars sold in the bloc, mainly thanks to a boom in sales of hybrid electric vehicles. Europe’s own automotive industry, centered on Germany, has been in the doldrums, with automakers like Volkswagen and Mercedes-Benz announcing job cuts and plant closures. A deal on cars would mark an important achievement for the Slovak commissioner, who also helped negotiate the EU’s Brexit agreement as well as the more recent Turnberry deal with Donald Trump’s White House.
Šefčovič was expected to brief reporters in Beijing shortly. EU leaders will review the outcome of the trade talks when they meet in Brussels next Thursday.
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