EU and China strike interim trade deal that could cut Chinese hybrid exports, EU envoy says

The Associated Press reports that the top trade envoys for China and the European Union agreed Friday on a broad initial agreement following two days of talks aimed at calming escalating tensions over trade imbalances[2].The Korea Times reports that the preliminary agreement could also stabilize rare earth supply chains[3]. According to the same outlet, the deal requires approval from leaders of all 27 EU member states.[3]According to the AP, China's commerce ministry said in a statement that both sides had reached "an understanding" on hybrid car trade[4]. The AP reports that the ministry said the two sides would next meet again in January by video conference and then in person in March.[4]The AP reports that EU trade chief Maros Sefcovic, who traveled to Beijing, said it was crucial that the negotiations deliver "tangible outcomes"[4]. According to the AP, Sefcovic had said the talks this week were the culmination of three months of intensive work. He had set an October deadline for meaningful results on trade rebalancing.[5]The AP reports that earlier in the week, the Chinese Commerce Ministry issued a statement urging the EU to avoid protectionist measures, warning that such moves could backfire.[5]According to EU statistics cited by the AP, the EU's trade deficit with China widened to 103.34 billion euros (about $116 billion) in the April-July quarter[6].