Stellantis, Renault Gain as EU, China Agree to Curb Chinese Hybrid Car Exports

3-line summary

• EU trade commissioner Maros Sefcovic announced Monday, after two days of talks in Beijing, a "shared understanding" to moderate China's hybrid and plug-in hybrid exports to the EU — a deal that could cut China's EU-bound exports by more than half over four years, though implementation details were not disclosed, according to Investing.com. Stellantis and Renault shares rose more than 2%, while Volkswagen and Porsche rose more than 1%.
• As part of the deal, China agreed to cut import tariffs on about €4 billion of EU exports including auto parts, olive oil and footwear, and to streamline export licensing for rare earths and permanent magnets; EU leaders are set to discuss the outcome at a Brussels summit next Thursday.
• The EU's trade deficit with China has grown to more than €1 billion a day; plug-in hybrid imports rose 86% over the year through September while prices fell 20%, with more than half of those imports originating from China. Volkswagen is currently undergoing restructuring that includes cutting about 100,000 jobs.

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