On 2026-10-09, European Trade Commissioner Maros Sefcovic announced a new understanding with China after two days of talks in Beijing. The announcement came alongside Chinese Commerce Minister Wang Wentao and marked the first tangible outcome of the ongoing trade and investment consultations between the two sides.
The EU’s trade deficit with China exceeded €1 billion a day in 2025. This figure illustrates the scale of the imbalance that has prompted both parties to seek a rebalancing of their economic relationship.
In the year to September, imports of plug‑in hybrid cars into the EU rose by 86 %. This sharp increase highlighted growing concerns about the volume of Chinese hybrid vehicles entering the European market.
The export reduction is to be achieved within four years from the date of the agreement.
China and the EU have reached an understanding that could reduce Chinese exports of hybrid and plug‑in hybrid cars to the bloc by more than half over four years. The agreed cut is framed as a reduction of over 50 % in the volume of these specific vehicle types.
The export reduction is to be achieved within four years from the date of the agreement. This period gives both sides a defined window to implement the cut while continuing discussions on related matters.
Alongside the export cut, the agreement includes ongoing discussions on price undertakings and on improving access for European products in China. These talks are intended to address broader concerns about market fairness and reciprocity.
Maros Sefcovic said, "I came here with one clear purpose: to start rebalancing the EU‑China trade relationship and to make sure this first phase of negotiations under the trade and investment consultations delivers its first tangible outcomes." His words frame the deal as a step toward correcting the trade imbalance.
The understanding is presented as part of broader efforts to rebalance the EU‑China trade relationship, which has been strained by high Chinese imports and the sizable daily deficit. Both sides view the deal as a first phase in a longer process.
As of the announcement on 2026-10-09, the agreement is in place, with the export reduction target set and the supplementary discussions on price undertakings and market access ongoing. The deal represents the initial concrete result of the EU‑China trade and investment consultations.