China agrees to half EU hybrid car exports

The European Union and China have “reached an understanding” that will cut Chinese hybrid car shipments to the bloc by “more than a half”, reports the South China Morning Post. The move sees some relief in trade tensions that have threatened to boil over into a full-blown trade war.

Speaking after trade talks in Beijing, EU trade chief Maros Sefcovic said the deal would see China slash its hybrid car exports “by several million cars” over a four-year period. “This is the first time that China has accepted to moderate its exports without going through the phase of prior trade tensions, and I very much appreciate that,” Sefcovic told reporters in the Chinese capital.

The sides also agreed to expedite EU applications for rare earth mineral export licences and improve market access for goods including car parts, olive oil and textiles, which Sefcovic said could be worth “almost €4 billion” ($4.5 billion) in current export value.