China and EU reach ‘understanding’ on hybrid vehicles after crunch trade talks

The European Union and China “reached an understanding” on trade in hybrid electric vehicles during marathon negotiations in Beijing on Friday, China’s commerce ministry said in a statement.Beijing is “willing to continue” fast-tracking licenses for rare earth mineral exports to Europe, while the sides will continue negotiations on reducing tariffs and creating minimum price deals that would allow Chinese electric vehicles to enter the EU market at a lower duty rate, according to the statement.The 16-point joint agreement, yet to be matched by an EU version, listed a series of deliverables from the latest round of talks, which the ministry said would be resumed in March next year. Most of these centred on further talks over long-standing trade issues, including medical equipment and power inverters.There was little detail provided on what sort of deal the sides had reached on hybrid cars. EU trade chief Maros Sefcovic – who met with Chinese Commerce Minister Wang Wentao and Vice-Premier He Lifeng – had been pressing Beijing to cap exports of the vehicles, as shipments to Europe had surged in recent months.