The EU called on China to voluntarily limit hybrid vehicle exports to avoid a trade war
Kyiv • UNN
Brussels called on Beijing to voluntarily limit hybrid exports to 15% of the EU market. Otherwise, the bloc may introduce its own restrictions.
The European Union has asked China to voluntarily limit hybrid vehicle exports as part of efforts to prevent a trade war. Reuters reports, UNN writes.
Details
According to the publication, Brussels wants Beijing to limit sales of Chinese hybrid vehicles to approximately 15 percent of the EU market, the publication reports, citing informed sources.
"If they do not limit their exports to our market, we will do it ourselves," the FT quotes an unnamed EU official as saying. "This is an attempt to stop deindustrialization. We must act. This is about managed trade."
"If they do not limit their exports to our market, we will do it ourselves. This is an attempt to stop deindustrialization. We must act. This is about managed trade"
According to the report, the EU also asked China to limit exports of other goods, including chemical products, while increasing its purchases of European goods.
European Commission President Ursula von der Leyen said on Wednesday that the bloc would use all available tools to reduce its trade deficit with China, which she called unsustainable.
In a speech before the European Parliament, she said that the EU's trade deficit in goods with China, which reached €360.6 billion ($413.4 billion) last year and grew by 9 percent in the first six months of this year, had reached a critical level, and that Europe was already experiencing a second China shock due to deindustrialization.
European Commissioner for Trade Maroš Šefčovič, who is leading negotiations with China on closing the trade gap, said he was seeking tangible results by October and is expected to visit China early next month.
The EU claims that the surge in Chinese exports, including chemicals, batteries, and cars, is caused by excess production capacity. Beijing rejects this criticism, saying that concerns about economic imbalances and overcapacity are protectionism aimed at containing China.