Symbolic imageEU says China accepts deep cuts to hybrid car exports after Beijing talks
China has agreed to restrain hybrid car exports to the EU, trade commissioner Maroš Šefčovič said on Friday after two days of talks in Beijing. Brussels says shipments could fall by half or more within four years.
Šefčovič announced the deal on Friday, 9 October, after negotiating with Chinese Commerce Minister Wang Wentao. He said exports would be held to half or less of the level the EU projects without Chinese intervention, which would prevent "several million" cars from being shipped. According to FAZ, EU circles put the baseline at the 600,000 to 800,000 cars expected this year, while the FT notes that actual volumes could still rise. The deal still needs approval from EU leaders at their summit next week.
One of 16 points
The hybrid understanding, which the joint statement says is consistent with WTO rules, is one of 16 points. Both sides will seek ways to reduce some tariffs, China will drop duties on products such as car parts and olive oil (€225mn on €4bn of exports), and it will continue fast-track licensing for rare earths. Šefčovič claimed easier access to rare earths, but the statement mentions only the licensing scheme, the FT reports.
Details and enforcement open
The European carmakers' association ACEA called the deal a positive step, and the German VDA wants to see details before judging. Trade committee chair Bernd Lange said it was progress but not yet a breakthrough. FAZ doubts the EU can verify compliance, recalling China's circumvention of an earlier solar panel deal. Talks are due to resume in January.
Other opinions
Beijing's statement was more muted than Europe's, which Nikkei Asia says cited $4.5bn in improved market access, and only the EU text spoke of a possible "elimination" of tariffs.