China and the European Union (EU) have decided to hit the brakes on a growing trade war. For a while, things were getting tense as both sides argued over money and rules for selling goods.

Now, they have reached an agreement. The main focus is on cars, specifically hybrid vehicles. These are cars that use both gas and electricity. Lately, Chinese companies have been selling a lot of these cars in Europe. This has caused some worry for European car makers who feel they cannot keep up with the lower prices.

Under this new deal, there will be limits on how many hybrid cars can come into Europe from China. Officials say this will help keep the market fair. China says the deal is good because it makes sure they still have "export space," which just means they can keep selling their products to European customers without the risk of heavy taxes or total bans.

Some experts are worried, though. They think this deal might be too soft. They fear that by being nice, Europe might let China get away with unfair business practices. Others think it is a smart move that prevents a messy fight that would hurt shoppers and businesses on both sides.

For now, the tension has cooled down. Both sides are trying to find a middle ground so that trade can keep moving across the border.

Source: South China Morning Post