China and the European Union have reached a preliminary agreement to limit the export of Chinese hybrid vehicles to the European market. Beijing hopes this will help it avoid tougher trade restrictions from the EU. Bloomberg reports, according to UNN.
Details
The negotiations concluded with an agreement on 16 points covering trade, investment, export controls, and intellectual property protection. One of the key outcomes was China’s agreement to reduce supplies of hybrid vehicles to Europe.
According to Bloomberg, the European Union is preparing safeguard measures against excessive imports. In particular, it is considering tariff quotas that would impose additional duties on vehicles once the established supply volume is exceeded.
Why the EU wants to limit Chinese cars
Chinese manufacturers are actively expanding their presence in Europe, in part because hybrid vehicles were not subject to the duties imposed by the EU on Chinese electric vehicles in 2024. In August, Chinese brands accounted for about a quarter of European hybrid sales.
At the same time, the EU’s trade deficit in relations with China exceeds €1 billion a day. Germany and France have already called for tougher measures to protect European manufacturers.
According to Bloomberg sources, the new restrictions could take effect on December 1. At the same time, the parties plan to continue negotiations in January and March, as the agreement reached so far does not resolve the fundamental trade disputes between the EU and China.