The European Union and China reached a broad preliminary trade agreement Friday following two days of talks aimed at easing escalating tensions over trade imbalances, according to EU Trade Commissioner Maros Sefcovic.
The deal emerged from negotiations between top trade envoys for both sides. While neither party disclosed comprehensive details of the agreement, Sefcovic outlined several key components during remarks to journalists in Beijing.
The accord includes lower tariffs for some European goods entering China and measures designed to stabilize rare earth supply chains. Sefcovic said the agreement could reduce Chinese electric and plug-in hybrid vehicle imports to the EU by up to 50 percent.
The EU trade commissioner also stated the deal could lower tariffs on products benefiting "almost every" EU nation. He noted that the agreement would prevent "several millions of car exports from China to the European Union."
The negotiations addressed China's growing trade surplus with the EU, which reached 360 billion euros, equivalent to approximately $410 billion, last year.
The preliminary accord requires approval from leaders across the 27-nation EU before taking effect. No timeline for that approval process was specified by officials.