The Ministry of Commerce of China announced that the country has reached an agreement with the European Union regarding the export of hybrid cars. This news was released after the conclusion of two days of negotiations by Maroš Šefčovič, the European Union's Commissioner for Trade, in Beijing. These negotiations were part of months-long efforts to reduce the European Union's daily trade deficit of one billion euros with China.
Details of the Agreement
The statement from the Ministry of Commerce of China stated: "After intensive consultations, the parties have reached an agreement on the trade of hybrid cars that is consistent with World Trade Organization rules." Hybrid cars were specifically highlighted in these negotiations as China's car exports to Europe have rapidly increased in recent months. In August, one-eighth of the cars sold in the European Union were from China, largely due to the rise in sales of electric hybrid vehicles.
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Impact on the European Automotive Industry
The European automotive industry, especially in Germany, has been facing a downturn, with companies like Volkswagen and Mercedes-Benz reporting job cuts and factory closures. This situation has led the European Union to seek ways to avoid the need for defensive measures to protect its market. The agreement on cars could be seen as a significant achievement for Šefčovič, who has previously played a role in Brexit negotiations and also in the recent agreement with the Trump administration.
Šefčovič is expected to speak with reporters in Beijing soon. European Union leaders are also set to review the results of these trade negotiations in a meeting scheduled for Thursday in Brussels.
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