The European Union and China have reached a new agreement affecting international automobile trade. According to Reuters, the deal announced on October 9th envisions halved Chinese exports of hybrid cars and hybrid plows towards the EU market.
The deal was announced by European Trade Commissioner Maroš Forefčovij, during his visit to Beijing. Discussions relate to the parties' efforts to address trade imbalances and tensions that have accompanied economic relations between the two powers.
In addition to restricting automobile exports, the deal includes measures aimed at improving European companies' access to the Chinese market and simplifying Chinese procedures for licensing rare mineral exports.
These materials are essential for the production of batteries, electric engines, and electronic devices. For this reason, their trade has become an important part of international negotiations.
However, the agreement does not imply the outcome of disputes between the parties. Its implementation and impact on prices, production and competition will become clearer over time.
