The European Union and China reached an agreement on car trade following months of tense negotiations, EU Trade Commissioner Maroš Šefčovič announced. He described the deal as the close of the first phase of talks, as Brussels pushes for a broader rebalancing of trade ties with Beijing. The agreement follows weeks of EU moves to tighten scrutiny of Chinese car imports. The European Union and China announced an agreement on car trade after a period of heated negotiations, EU Trade Commissioner Maroš Šefčovič said. He described the deal as marking the end of the first phase of talks between the two sides, though further details on the agreement's specific terms were not immediately released. The agreement comes after weeks of rising friction between Brussels and Beijing over car exports.

Germany and France had pushed the EU to adopt a new trade tool aimed at countering what officials describe as an influx of Chinese vehicles, while EU negotiators travelled to Beijing seeking a breakthrough in broader trade talks. Brussels has said it wants a fundamental rebalancing of its trade relationship with China, rather than a one-off fix. Šefčovič's reference to a 'first phase' suggests more negotiations lie ahead on wider trade issues between the two economies. European carmakers, who have faced growing competition from Chinese electric vehicle exporters, are likely to watch closely for how the deal is implemented in the months ahead.

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