China and Europe Make a Deal to Stop a Trade Fight

Both sides reached an agreement to manage car imports and avoid a full-blown trade war.

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 Europ…