European Commissioner “Restricts China’s HV exports” Facilitates rare earth permits – Ministerial talks

[Beijing Current Affairs] European Commissioner Šefčović, the trade representative of the European Union (EU), and Chinese Minister of Commerce Wang Wentao concluded two days of ministerial-level trade talks in Beijing on the 9th. Šefčović announced that they had agreed to curb exports of hybrid vehicles (HVs) and plug-in hybrid vehicles (PHVs) from China to the EU. Meanwhile, China has reiterated its policy to facilitate export permits for rare earths to the EU.

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He further emphasized that ``we now have a path to reducing exports of Chinese-made HVs and other products to the EU to less than half of the previous forecast'' over the next four years. The results showed the potential to lead to reductions in the number of millions of units. The stock prices of European automakers rose across the board, reflecting positive results and expectations that competition with Chinese companies would ease.

The EU and China announced a total of 16 outcomes in a joint statement. Regarding HV trade, it was confirmed that ``we will deal with it in accordance with the rules of the World Trade Organization (WTO).'' However, there is no mention of export restrictions, and China has not explained the scale of the reductions or the timing of implementation.

In terms of export controls, China will facilitate export permits for rare earths and permanent magnets to the EU. The two sides will hold a ministerial-level video conference in January next year, followed by the next round of talks in March.