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China and EU reach hybrid vehicle trade understanding

Original: China, EU reach hybrid vehicle trade understanding, keep talks alive on EV dispute

China and the European Union have reached a trade understanding covering hybrid vehicles, while negotiations continue over their wider dispute on electric vehicles. The agreement eases one friction point in a relationship strained by tariffs on Chinese-made EVs, but the core EV disagreement remains unresolved. Officials on both sides say talks will continue, with the understanding seen as a signal both want to avoid a broader trade escalation.

Why now: It signals progress in an ongoing trade dispute between China and the EU that affects major car markets and manufacturers.

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