China has agreed to halve its exports of hybrid cars to European Union over next four years. The landmark deal followed intense negotiations, as both sides sought to avoid harmful trade war. The EU's trade commissioner, Maros Sefcovic, said agreement could prevent millions of vehicles from entering European market. He said: "This package proves that negotiations bring results." European carmakers have struggled to compete with cheaper Chinese imports. China's rise has raised fears of factory closures and job losses in Europe. Despite these concerns, Mr Sefcovic was pleased with talks. He said deal was "only first step" towards more equitable trade relations.
China has rapidly become major player in global car industry. Chinese manufacturers have established foothold in many markets worldwide. China's auto companies have become world leaders in electric and hybrid technology. Chinese cars are now very popular with motorists across globe. Makers such as BYD, Xiaomi, and Geely offer competitively priced vehicles that are reliable and have good build quality. Consumers see these cars as more affordable alternatives to European and Japanese brands. Sales of Chinese cars in EU now make up around 10 per cent of new car market. In UK, this figure has steadily risen to nearly 20 per cent.
