Chinese vehicles made up over half of the EU’s hybrid car imports in the year to September

A deal between China and the European Union could slash Chinese hybrid car exports to the bloc by more than 50%, EU Trade Commissioner Maros Sefcovic said Friday.

Sefcovic announced the outcome after two days of talks in Beijing with Chinese Commerce Minister Wang Wentao, focused on the EU’s growing trade deficit with China.

The EU’s trade gap with China currently exceeds $1.12 billion per day.

Last year, Chinese exports to the bloc totaled $560 billion, while EU exports to China dipped to $268.3 billion.

The deal comes amid rising tensions. Europe is torn between reducing the trade deficit and allowing affordable Chinese goods amid its high cost-of-living crisis.

EU plug-in hybrid imports surged 86% through September, with prices down 20%. Chinese vehicles made up over half of those imports, up from 30% by value in 2025.

Sefcovic said the two sides agreed to slash Chinese import duties on over $4 billion worth of EU goods, including car parts, footwear, and olive oil, and to smooth China’s export licenses for rare earths and permanent magnets.