China to cut hybrid car exports to the EU by more than half

The European Union and China have agreed to limit Chinese exports of hybrid and plug-in hybrid cars to the EU. This could cut shipments by more than half, European Commissioner Maroš Šefčovič said after talks in Beijing.

“We have reached a common position on limiting Chinese exports of hybrid and plug-in hybrid vehicles to the EU. This opens the way to cutting Chinese exports by more than half,” Šefčovič said. He did not name the specific measures that would bring about such a drop.

According to China’s Ministry of Commerce, the two sides also agreed to step up dialogue on export restrictions and acknowledged that trade in hybrids must comply with World Trade Organization rules. The ministry described the agreement as the outcome of tense negotiations.

China and the EU will continue to discuss price commitments from carmakers as part of the EU’s investigation into possible unlawful subsidies for Chinese electric vehicles. Such commitments could become an alternative to EU tariffs if manufacturers accept terms that ease Brussels’ concerns about distorted competition.

Beijing also said it is ready to keep making it easier to obtain export licences for rare earth elements and permanent magnets for the EU. These are needed by the car industry, electronics and the manufacture of energy-transition technology.

Šefčovič travelled to Beijing saying that the talks should deliver tangible results in rebalancing trade between China and the EU, and called them the result of three months of intensive work. According to the AP news agency, trade tensions have grown in recent months, with both sides introducing or considering restrictions on imports of each other’s goods.

Source: novinky.cz