EU-China's First Phase of Trade Talks Deliver Potential Concessions on Hybrid Cars, Rare Earths

01:04 AM EDT, 10/12/2026 (MT Newswires) -- The initial phase of the latest European Union and China trade negotiations in Beijing delivered preliminary commitments to "moderate" hybrid car exports, accelerate rare earth shipments, and lower export tariffs. Amid efforts to create a "more balanced" bilateral trade partnership, European Trade Commissioner Maroš Šefčovič said Oct. 9 that the EU reached a "shared understanding" with China to curb the latter's hybrid and plug-in hybrid exports, potentially cutting them by over 50%. Šefčovič added that China agreed to reduce its most-favored-nation tariffs for 4 billion euros worth of EU goods, including olive oil, car parts and footwear, which could save European exporters at least 225 million euros in duties. Beijing also committed to fast-tracking export licenses for critical minerals, such as rare earths and permanent magnets. At the same time, Brussels intends to ease dual-use licensing for China and enhance transparency around export control listings. The outcomes remain subject to endorsement by European Commission President Ursula von der Leyen and the European Council. The two sides will reconvene in January 2027, ahead of the third Trade and Investment Consultations in March 2027.