The European Union and China have reached a preliminary agreement in Peking to slow down the export of Chinese hybrid and plug-in hybrid cars to Europe, following two days of negotiations. European Commissioner Sefcovic, who met with Chinese Minister of Commerce Wang Wentao, reported "tangible results," with an agreement to halve Chinese exports of these vehicles to the European market over the next four years, amounting to several million fewer cars. The agreement also addresses improved market access for European products in China, including the export of rare earth metals. While China confirmed the agreement, details remain undisclosed. This move aims to address escalating trade tensions between Brussels and Peking, spurred by the EU’s concerns regarding a significant trade deficit with China and unfair competition due to Chinese state subsidies, costing over 1 billion euros daily last year. The European automotive industry organization, ACEA, has welcomed the deal as a positive step, pending a detailed analysis, and the outcomes will be reviewed by European Commission President Von der Leyen before further actions are discussed with EU leaders.