China, EU strike hybrid-car deal to head off broader trade curbs
Why it matters: EU leaders meet Thursday to weigh tougher tools as the bloc’s trade deficit with China tops 1 billion euros a day.
China and the European Union reached a 16-point trade consensus late Friday that includes an understanding to curb Chinese hybrid-vehicle exports to Europe, a move aimed at easing pressure for broader restrictions. People familiar with the talks said the EU plans safeguard measures to limit imports, likely through tariff-rate quotas that impose levies above a set volume. The compromise comes before an EU leaders’ meeting on Thursday on whether to adopt stronger defenses against a surge in subsidized Chinese goods. Chinese brands made up about a quarter of European hybrid sales in August, after hybrids avoided the EU’s 2024 tariffs on electric vehicles. The two sides plan further talks in January and March.