EU and China Agree on Hybrid Car Import Caps and Mineral Supply

Buying a Chinese hybrid car in Denmark or Sweden may soon become more expensive. The European Union and China reached a 16-point trade deal in Beijing. The EU will cap Chinese hybrid car imports at 350,000 units per year. This limit could cut Chinese hybrid car exports to Europe by more than half.

China will also reduce export tax rebates for new-energy vehicles to 13 percent. Industry reports indicate this tax change may lead to higher prices overseas. Meanwhile, China promised a green channel for rare-earth mineral exports to the EU. These critical minerals are vital for local European green technology industries.

Both sides also discussed easing trade rules for medical devices and agricultural products. Further talks will focus on tariffs and funding for clean energy projects. European leaders continue to discuss ways to address trade imbalances. Reporting on these bilateral talks was originally published by Carbon Brief.