The European Union and China have reached a preliminary agreement concerning the trade of hybrid vehicles. This deal aims to address the rising volume of Chinese-manufactured plug-in hybrid electric vehicles entering the European market, which increased after the EU imposed tariffs specifically on battery electric vehicles.
According to the agreement, the volume of conventional and plug-in hybrid vehicles imported from China into the European Union is expected to be reduced by half. The Ministry of Commerce of China confirmed that the understanding was reached following intensive consultations and aligns with the regulations set by the World Trade Organization.
While both parties have reached a consensus, the specific terms, implementation mechanisms, and the timeline for these reductions remain undisclosed. The agreement follows months of negotiations involving discussions on potential import limits, voluntary reductions, and trade policies between the two economic entities.
