China agrees to cut hybrid vehicle exports to the European Union
China and the European Union reached an agreement that could reduce Chinese exports of hybrid vehicles to the bloc by more than half, according to media reports. The agreement also covers easing procedures and licences for Chinese exports of rare earths and critical minerals to Europe, and was announced by EU trade commissioner Maroš Šefčovič after two days of negotiations with Beijing aimed at lowering the trade deficit. Shares of European carmakers rose on the news.
Why it matters: The deal belongs to the briefing's trade theme, in which tariff and export-restriction disputes between the EU and China are being handled through negotiated reductions rather than escalation.