EU and China Reach Agreement on Hybrid Vehicle Quotas

The EU and China agreed to restrict Chinese hybrid vehicle imports into Europe. This deal will influence vehicle prices and model choices across Denmark and Sweden.

China will cap hybrid car exports to the EU at 350,000 units per year. The quota takes effect in December and lasts four years. It will increase by six percent each year. This measure cuts China's projected hybrid exports for 2027 by almost half.

China also agreed to reduce tariffs on nearly 4 billion euros of European exports. The deal includes fast-track licensing for critical materials. Both sides continue talks on market access for agricultural and medical goods.

European Commission President Ursula von der Leyen welcomed the move. She noted the EU's daily trade deficit with China still exceeds 1 billion euros. The EU plans further safeguards on Chinese imports by early 2027.

These safeguards may target chemicals, furniture, and machinery. This agreement marks a major shift in bilateral trade relations. In October 2024, the EU put tariffs up to 35.3 percent on Chinese electric vehicles. China responded with WTO complaints and tariffs on European pork and dairy products. (Source: Asia Times)