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[BUSINESS] · China, EU · 100 sources

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EU and China reach preliminary deal to cap hybrid vehicle imports

The European Union and China have reached a preliminary agreement to address the growing trade imbalance, which has seen the EU's deficit with China exceed one billion euros per day. A central component of the deal involves a safeguard measure to limit the import of Chinese hybrid and plug-in hybrid vehicles to 350,000 units in the first year. This quota is expected to increase by 6% annually starting from the second year and will remain in effect for four years.

To comply with World Trade Organization non-discrimination principles, the quota will apply to all hybrid vehicle imports, though the specific allocation for China will not be lower than that of any other exporting nation. The measure aims to potentially reduce Chinese hybrid exports to the EU by more than half.

In exchange, China has agreed to reduce or eliminate customs duties on approximately €4 billion worth of European exports, including automotive parts, olive oil, and footwear. Additionally, China will facilitate the issuance of export licenses for critical raw materials, such as rare earths and permanent magnets, which are essential for the European automotive, energy, and defense industries.

Entities

Acea · BYD · China · European Union · Maros Šefčovič · Renault · Volkswagen · Wang Wentao · World Trade Organization

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Sources

UE vrea să-și protejeze industria auto [www.romania-actualitati.ro]