China has agreed to halve its exports of hybrid cars to the European Union. The deal was negotiated with both sides seeking to avoid a harmful trade war. The EU's trade commissioner said the agreement could prevent millions of vehicles from entering the EU. He said: "This package proves that negotiations bring results." EU carmakers are struggling to compete with cheaper Chinese imports. China's rise has increased fears of factory closures and job losses. Despite these concerns, the EU commissioner was pleased with the talks. He said they could help bring more equitable trade relations.

China has become a major player in the global car industry. Chinese manufacturers have a foothold in many markets worldwide. The country's auto companies have become world leaders in hybrid technology. Makers such as BYD and Xiaomi make competitively priced cars that are reliable and have good build quality. Motorists see these cars as more affordable alternatives to European and Japanese brands. Sales of Chinese cars now make up around 10 per cent of the new car market in the EU. In the UK, this figure is nearly 20 per cent.