EU asked China to limit exports of hybrid cars

Dand according to the British newspaper, which cites three unidentified people who are aware of the negotiations, Brussels wants the share of hybrid vehicles manufactured in China and sold on the EU market to be limited to about 15%, compared to more than a third today.

The initiative comes at a time of growing concern in Europe with the impact of Chinese competition on the car industry, which has announced mass redundancies.

“ If they do not limit exports to our market, we will do so,” said the Financial Times a European official, who framed the initiative in the need to stop deindustrialisation in the European bloc.

In addition to cars, Brussels wants Beijing to modify exports of other products, including chemicals, and increase purchases of European products.

The President of the European Commission, Ursula von der Leyen, said on Wednesday that the EU trade deficit with China, estimated at EUR 1 billion a day, had reached a “turn point”, defending measures to rebalance economic relations.

European Trade Commissioner Maroš Šefčovič is due to travel to Beijing in October for negotiations with the Chinese authorities.

According to the Financial Times, Brussels hopes to reach an agreement similar to that reached with Japan in 1986, when Tokyo voluntarily agreed to limit car exports to Europe. The measure led Japanese manufacturers such as Toyota and Nissan to strengthen investment and production on the European continent.

The pressure on Brussels increased with the strong growth of Chinese hybrid car imports, which are subject to a 10% tariff, unlike fully Chinese electric vehicles, to which the EU applied in 2024 additional anti-subsidy duties.

European imports of hybrids manufactured in China increased from 3,800 units in October 2024 to 50,000 in July this year, while average prices decreased, according to the data cited by the newspaper.

The EU is looking for a negotiated solution, but Germany and France are bringing positions closer to a firmer response to Chinese competition, the Financial Times also states.

Beijing rejects the accusations that the competitiveness of its products is the result of state subsidies, attributing the lowest prices to the efficiency of Chinese companies.

In negotiations with Brussels, China also wants European countries to lift export controls and sanctions against Chinese companies.