EU and China Reach Preliminary Deal on Hybrid Cars

The European Union and China reached a preliminary political deal on trade.

The agreement covers hybrid vehicles and certain raw materials.

EU Trade Commissioner Maros Sefcovic announced the news in Beijing on Friday.

Negotiations lasted three months to address trade imbalances between both sides.

Sefcovic expects the deal to cut Chinese hybrid car exports to Europe by more than half.

He stated this is the first time China voluntarily agreed to limit trade in this way.

Europe's car industry faces heavy pressure, making the deal important for European makers.

The agreement is not yet final. It requires approval from leaders of EU member states before taking effect.

Details about the raw materials provisions were not released during the announcement, CPH Post reported.