Stories
EU Prepares Import Cap on Chinese Hybrid Cars to Balance Trade
M
Moneycontrol•07-10-2026, 15:40
EU Prepares Import Cap on Chinese Hybrid Cars to Balance Trade
- •The European Union is preparing safeguard measures to limit imports of Chinese hybrid vehicles to reduce its trade deficit.
- •Chinese-made hybrid sales have surged in Europe, now making up a quarter of total sales as EV import growth slows.
- •The proposed safeguard measures could use tariff-rate quotas to place a levy on imports exceeding a certain volume.
- •EU trade chief Maros Sefcovic is traveling to Beijing for talks with Chinese Commerce Minister Wang Wentao to discuss trade issues.
- •China has previously opposed voluntary export restrictions, stating they violate WTO rules and principles of fair competition.
Key Questions Answered
The European Union is preparing safeguard measures to limit imports of Chinese hybrid vehicles into the bloc using time-limited tariff-rate quotas, aiming to reduce the growing trade deficit and serve as a test case for other sectors.
The European Union's trade deficit with China exceeds €1 billion, or $1.1 billion, a day, prompting the commission to harden its trade policies and defend vulnerable European industries against surging Chinese imports.
China's Commerce Ministry has firmly opposed voluntary export restrictions, stating that they seriously violate WTO rules, counter the laws of a market economy, and contradict the principle of fair competition.
