China and the European Union reached an understanding on hybrid vehicles during trade talks on Friday, easing fears of a full-scale trade war between the two sides. They also discussed rare minerals, according to a joint statement cited by China’s commerce ministry.
EU trade chief Maros Sefcovic and China’s commerce minister Wang Wentao agreed to strengthen dialogue and follow a company price commitment process for hybrid cars. The statement did not describe a separate agreement on rare minerals.
China-EU talks on hybrid cars
The understanding centres on a process involving company price commitments for hybrid cars. The two commerce chiefs also agreed to maintain stronger dialogue, according to the joint statement.
The talks came amid concerns that trade tensions between China and the EU could escalate into a wider dispute. The understanding on hybrid vehicles has eased fears of a full-scale trade war.
Rare minerals also discussed
China and the EU discussed rare minerals during the trade talks. The joint statement cited by Beijing’s commerce ministry did not say that the sides reached an agreement on the issue.
