Brief
EU and China reach preliminary trade deal to slash EV imports and cut tariffs
The deal, announced after two days of talks in Beijing, aims to curb Chinese electric‑vehicle shipments and ease market access for European exporters.
By Felo News Desk · Published
The EU’s top trade envoy and his Chinese counterpart announced a preliminary agreement on Friday that could cut up to half of Chinese electric and plug‑in hybrid vehicle imports to the bloc and lower tariffs on a range of European products, Fortune reported.
What happened
After two days of negotiations in Beijing, European Commissioner for Trade Maroš Šefčovič said the parties reached a broad initial deal. The agreement includes measures to stabilise rare‑earth supply chains and to reduce tariffs on EU goods such as car parts, olive oil and footwear – sectors worth almost €4 billion in current export value. Šefčovič indicated that the deal still requires approval from leaders of all 27 EU member states.
What the report adds
Fortune noted that the EU trade envoy did not disclose detailed tariff rates but highlighted that the reduction would benefit “almost every” EU nation. The article also cited China’s Commerce Ministry, which posted that Commerce Minister Wang Wentao expressed concern over recent EU restrictions, insisting China is a partner rather than the cause of the EU’s trade imbalance.
What was said
Šefčovič told reporters, “by this step we are actually preventing several millions of car exports from China to the European Union.” He added that EU leaders would need convincing evidence before taking further steps, warning that “they (China) could put under the threat whole sectors in the European industry, literally thousands of jobs.”
Sigrid de Vries, head of the European Automobile Manufacturers’ Association, said the deal “appears to avert further instability in the EU and can help facilitate the transition to a new era of Chinese presence in the European market in an orderly way and this is in the long‑term interests of all parties.”
How it came about
The agreement follows a series of EU‑China talks that began earlier in October, including Šefčovič’s visit to Beijing to discuss the EU’s daily €1 billion trade deficit and rare‑earth curbs. Earlier Felo coverage detailed those negotiations and the pressure on both sides to address a €360 billion Chinese surplus with the EU.
Key facts
- The preliminary deal could cut up to 50% of Chinese electric and plug‑in hybrid vehicle imports to the EU. (fortune.com)
- Tariffs on EU products such as car parts, olive oil and footwear, worth almost €4 billion, are slated to be lowered. (fortune.com)
- The agreement includes steps to stabilise rare‑earth and permanent‑magnet supply chains. (fortune.com)
- EU leaders must approve the deal before it takes effect. (fortune.com)
- Chinese Commerce Minister Wang Wentao said China is a partner, not the root of EU trade problems. (fortune.com)
Sources
- [1] fortune.com — originally reported as “EU says trade deal could cut up to 50% of Chinese EV and plug-in hybrid imports and lower tariffs for some European exports to China”
