NEW: Beijing turns the screws as Brussels tests limits of restraint China's escalation dominance, Europe's reticence, and what it means for their brewing trade war A deep dive from me with plenty of exclusive details

There was so much EU China news this week it broke my news feed

Trump announces that the U.S. will buy Russian oil. This is just a few weeks after Trump signed the Lindsey Graham Russia Sanctions bill, which authorized him to place 100% tariffs on countries that are the biggest importers of Russian oil/gas. Are we going to tariff ourselves now?

Sefcovic: "We have never spoken about trade wars, and you probably heard me saying that I am one of those who knows that sometimes it is easy to declare a trade war or any war, but it's very difficult to stop it."

Sefcovic asked how they will limit PHEVs "There are different techniques... I think if you look in recent couple of months, I think you would find the answer. But I'm sure appreciate I first need to get endorsement by the leaders" Steel mechanism?

Sefcovic: "In the case of hybrids and plug-in hybrids. We are talking about reducing exports from China to European Union over four years by several million cars"

Asked if this is enough to forestall EU action, Sefcovic: "I believe that we achieved very good results. But as I said & I think here we have a clear understanding with Minister Wang went out that this is not end, this is the beginning"

Sefcovic: "I would like to underscore once again that this is based on a negotiated solution, which I would say in these particular turbulent times in global trade is very much appreciated."

Sefcovic: "We never had the level of intensity of our exchanges and contacts, as we have over the last 3-4 months with our Chinese counterparts... I want to say that this was done in good faith, and this is the result of very intense work"

On PHEV, Sefcovic: "This is the first time that China has accepted to moderate its exports without going through the phase of prior trade tensions, and I very much appreciate that"

Sefcovic: "Having said that, this is far from the end. It is a crucial first step, but only a first step in the process of rebalancing. As VDL has said, dialogue needs results, and where the dialog cannot deliver, the EU will use its tools to ensure rebalancing."

Sefcovic: "Third, we have reached a shared understanding to further facilitate China's export licensing for rare earth and permanent magnets."

Sefcovic: "Reached a shared understanding to improve access to Chinese market for a series of EU products through the lower most favored nations (MFN) tariffs" Names olive oil & footwear, totalling 4 billion euros

EU trade chief Sefcovic presser in Beijing "First, we have reached. reached a shared understanding to moderate China's export of hybrids and plugging hybrids to the European Union... opens prospects of cutting China's exports by more than a half"

Around 45 minutes since this dropped and we still have not had it confirmed or matched by the EU. Beijing the master of getting their readout published first, but this is supposed to be a *joint statement*...

Little detail, but document also says they will continue to explore reducing tariffs and price undertaking for EVs Lots of agreement for dialogue (medical devices, cosmetics, export controls, inverters, investment, IPR)

BREAKING: Mofcom has just released what it calls a "joint statement" from talks with EU trade chief Sefcovic from the 16 point statement, the main highlight: "The two sides reached an understanding on trade in hybrid vehicles in a manner consistent with WTO rules"

Rare earths: "The Chinese side is willing to continue facilitating the approval of export licenses for rare earths and permanent magnets to the EU through the “green channel” mechanism"