EU and China Agree on EV Export Cuts Amid Trade Deficit Concerns

European Union leaders finalized a trade deal with China in October, where China committed to reducing electric vehicle exports to Europe by nearly half. This concession follows a trade deficit exceeding €360 billion and rising Chinese exports to the bloc.

The EU authorized the European Commission to create new trade defense tools, including a 'killer switch' provision that could enable immediate tariffs or quotas on products. However, the legal framework lacks defined triggers, scope, and practical meaning for a trade 'cut-off'.

Despite the trade deal, member states deemed China's concessions insufficient for broader trade issues and approved the Commission's urgent authority to implement these tools without delay.