EU China agreement to cut electric vehicle shipments

China and the European Union have reached a mutual understanding to reduce exports of Chinese electric and hybrid vehicles to the European market by half. Maros Sefcovic, the European Union trade chief, stated that both parties transitioned to a negotiated solution, noting that the Chinese partners appreciated the arguments concerning rising political pressure in European nations where cheap import flows threaten thousands of jobs across various economic sectors. He explained that the agreement followed intensive negotiations since June, and that China accepted for the first time to ease its exports without prior trade tension. Sefcovic clarified that the deal opens the possibility of cutting China's exports of hybrid vehicles by more than half, translating into reduced shipments of plug-in hybrid and battery electric vehicles over the next four years to contain a daily trade deficit and protect threatened European jobs.