China and the European Union have reached a preliminary understanding on vehicle trade that could cut Chinese electric and hybrid vehicle imports into the bloc by half. EU Trade Commissioner Maroš Šefčovič announced the development on October 9 in Beijing, after two days of talks with China’s Commerce Minister Wang Wentao aimed at easing trade tensions.
The sides have not released detailed terms. Šefčovič said the arrangement would prevent several million vehicles from being exported from China to the EU. China’s Commerce Ministry described the hybrid-car agreement as the result of intensive negotiations. The European Automobile Manufacturers’ Association’s director general, Sigrid de Vries, said the deal could support a more orderly next phase for Chinese participation in Europe’s market.
The broader understanding also covers lower duties on some European goods shipped to China and measures to stabilize rare-earth supply chains. It remains provisional and requires approval from the leaders of all 27 EU member states. The EU imposed additional duties on Chinese electric cars in 2024; afterward, Chinese manufacturers stepped up hybrid deliveries to Europe. China had previously rejected voluntary limits on export volumes.