EU Trade Chief Says Deal Could Cut Chinese Hybrid Exports in Half

EU trade chief Maros Sefcovic told reporters Friday that China and the EU reached an understanding on hybrid vehicle trade after talks in Beijing with Chinese Commerce Minister Wang Wentao on Oct. 8-9, 2026. He said it opens the prospect of cutting China's hybrid and plug-in hybrid exports by more than half over four years, a reduction of several million cars. The EU's trade deficit with China reached 360 billion euros last year, or about 1 billion euros a day, which Sefcovic called unsustainable. A joint statement after the second China-EU trade and investment consultation meeting listed 16 common understandings covering trade balancing, export controls, IP rights and WTO reform. China said it is willing to continue facilitating export licenses for rare earths and permanent magnets for the EU. Sefcovic said improved market access for EU goods including car parts and olive oil totals close to 4 billion euros. ACEA's Sigrid de Vries welcomed the announcement. Bernd Lange had said China's economic crisis gives the EU bargaining power. the joint statement gave few details on the hybrid cut Sefcovic quantified. He called it a crucial first step but only a first step in rebalancing. Both sides plan a January ministerial video conference and a March 2027 meeting. Sefcovic planned to debrief EU ambassadors on Sunday.