EU to limit Chinese hybrid car imports for four years: Beijing deal

The European Union and China have agreed to limit imports of Chinese hybrid cars into Europe. According to EU trade commissioner Maroš Šefčovič, the deal runs for four years and could stop the import of “several million cars.” After two days of tense talks in Beijing, he announced that China had agreed to restrain the flow of hybrids and plug-in hybrids into the European market.

Hybrids are one of the most sensitive issues in EU–China relations: they are the route through which Chinese manufacturers are making an aggressive push into the European market, competing fiercely with local carmakers and, as the EU fears, threatening jobs.

On Monday, a European Commission spokesperson clarified that the agreement will cut current export volumes to the EU by more than half. They had been forecast to reach 800,000 cars by the end of 2026. The EU's first import-limiting measures should be expected from early December, Reuters reported.

European carmakers accuse China of unfair trade practices, pointing to subsidies for domestic companies, currency manipulation and barriers for European firms on the Chinese market. Beijing rejects the accusations, stresses the successes of its industry and points to weaknesses in the European economy. On Saturday, China welcomed trade compromises with the EU, saying they had helped avoid escalation and marked a “new beginning.”

Source: novinky.cz