The EU's tough pressure works! China makes major concessions and agrees to cut exports of more than half of gas-powered electric vehicles

After the European Parliament overwhelmingly passed a resolution with a tough stance on China on the 7th, emphasizing that "if China does not open its market, the EU will take corresponding countermeasures," China made major concessions in trade negotiations with the EU on the 9th. (Reuters)

[Compiled by Lu Yongshan/Comprehensive Report] After the European Parliament overwhelmingly passed a resolution on the 7th that took a tough stance on China, emphasizing that "if China does not open its market, the EU will take corresponding countermeasures." On the 9th, China made major concessions in trade negotiations with the EU. EU Trade Commissioner Maros Sefcovic said that the two sides have reached an understanding that China will cut its exports of gasoline-electric hybrid vehicles to the EU by more than half, temporarily easing trade tensions between the two places.

On the 7th, the European Parliament voted 454 to 86 to pass a resolution with a tough stance on China. The resolution's core demand is "economic reciprocity" and emphasizes that "if China does not open its market, the EU will take corresponding countermeasures." The EU's trade deficit with China will reach approximately 360 billion euros (NT$12.9 trillion) in 2025, and Brussels accuses Beijing of promoting unfair competition through state subsidies.

Sefcovic held the "Second EU-China Trade and Investment Consultation Meeting" with Chinese Minister of Commerce Wang Wentao in Beijing from the 8th to the 9th. The meeting ended on the evening of the 9th.根據歐盟執委會發布的聲明，塞夫柯維奇在會後記者會上表示，雙方達成了多項初步成果與共同諒解。

The two sides reached a consensus to adjust the number of gasoline-electric hybrid vehicles exported from China to the EU, potentially cutting China's exports by more than half and "millions of vehicles" in the next four years. Sefcovic pointed out: "This is the first time China has accepted adjustments to its exports without going through a previous phase of trade tensions."

In addition, the two sides also agreed to expand access to the Chinese market for a range of EU products by reducing most-favored-nation tariffs, covering products such as auto parts, olive oil and footwear. The current total export value is about 4 billion euros (NT$142.84 billion), and it is expected to save 225 million euros (NT$8.03 billion) in tariff costs.雙方還將加快歐盟稀土礦物出口許可證的申請。

Hong Kong's South China Morning Post reported that Geoplitechs, a website that specializes in studying China's policies, commented: "Judging from the details announced by the EU, China seems to have made major concessions on multiple issues. Whether these concessions will lead to the EU making corresponding adjustments to trade restrictions and market access remains to be seen in the coming months."

Sefcovic said EU leaders will decide next week whether China's concessions are enough, but he played down the possibility of launching a full-scale tariff war against China.