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China will halve exports of hybrid cars to the European Union. Both sides were seeking to avoid a harmful trade war. The EU said the agreement could stop millions of cars from entering the EU. It said "negotiations bring results". EU carmakers are struggling to compete with cheaper Chinese imports. They are worried that China's rise could lead to factory closures and job losses. Despite these concerns, the EU said there could be better trade relations.
China is now a major player in the global car industry and has a foothold in many markets. The country's car companies are leaders in hybrid technology. They make competitively priced cars that are reliable and have good build quality. Motorists see them as more affordable alternatives to European 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.
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